fb#C-SOYB Price Forecast | Coronavirus may interfere with grain shipments | IFCM UK

Technical Analysis #C-SOYB : 2020-10-29

Recommendation for Soybean:

Sell
Strong SellSellNeutralBuyStrong Buy

Below 1051

Sell Stop

Above 1090

Stop Loss

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RSI Sell
MACD Sell
MA(200) Neutral
Fractals Neutral
Parabolic SAR Sell
Bollinger Bands Neutral

Chart Analysis

IFC Markets Tech Analysis

On the daily timeframe, SOYB: D1 is correcting down from the maximum since July 2016. It broke down the uptrend support line. A number of technical analysis indicators formed signals for further decline. We do not rule out a bearish movement if SOYB falls below its last low: 1051. This level can be used as an entry point. We can place a stop loss above the maximum since July 2016 and the Parabolic signal: 1090. After opening a pending order, we can move the stop loss following the Bollinger and Parabolic signals to the next fractal maximum. Thus, we change the potential profit/loss ratio in our favor. After the transaction, the most risk-averse traders can switch to the 4-hour chart and set a stop loss, moving it in the direction of the bias. If the price meets the stop loss (1090) without activating the order (1051), it is recommended to delete the order: the market sustains internal changes that have not been taken into account.

Fundamental Analysis

France and Germany have introduced quarantine due to the 2nd wave of Covid-19. Will the soybean quotations continue to decline?

It is unlikely that food consumption will decrease because of the 2nd wave of the coronavirus pandemic. Yet yesterday, the prices of almost all grain futures dropped markedly. France and Germany have introduced quarantine. Investors fear that other countries will follow suit. This could hurt shipping and export of US grain and soybean, which led to lower prices. The rains in Brazil after the drought were an additional negative factor for soya. This may increase the yield.

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