Recommendation for Wheat : Sell
Sell Stop : Below 586.7
Stop Loss : Above 626.1
| Indicator | Value | Signal |
|---|---|---|
| RSI | Sell | |
| MACD | Sell | |
| Donchian Channel | Sell | |
| MA(200) | Buy | |
| Fractals | Neutral | |
| Parabolic SAR | Sell |
Chart Analysis
On the daily timeframe the WHEAT: D1 is falling toward the 200-day moving average MA(200) which is rising still. The RSI has formed a bearish divergence. We believe the bearish momentum will continue as the price breaches below the lower Donchian boundary at 586.7. A pending order to sell can be placed below that level. The stop loss can be placed above 626.1. After placing the order, the stop loss is to be moved every day to the next fractal high, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level without reaching the order, we recommend cancelling the order: the market has undergone internal changes which were not taken into account.
Fundamental Analysis
Wheat price decline continues after lower global ending stock forecast in WASDE. Will the wheat price continue declining?