fb#C-ORANGE Price Forecast | A reduction in early oranges harvest is expected in South America | IFCM

Technical Analysis #C-ORANGE : 2020-02-11

Recommendation for Orange Juice:

Buy
Strong SellSellNeutralBuyStrong Buy

Above 100

Buy Stop

Below 93.5

Stop Loss

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Articles 1590
IndicatorValueSignal
RSI Buy
MACD Buy
Parabolic SAR Buy
Bollinger Bands Buy
MA(200) Neutral
Fractals Buy

Chart Analysis

IFC Markets Tech Analysis

On the daily timeframe, the ORANGE: D1 is in a neutral trend. Now it has bounced off its lower boundary and is correcting up. A number of technical analysis indicators formed buy signals. The bullish momentum may develop in case ORANGE rises above its last high and the upper Bollinger band at 100. This level may serve as an entry point. The initial stop loss may be placed below the last fractal low, the low since May 2019 and the Parabolic signal at 93.5. After opening the pending order, we shall move the stop to the next fractal low following the Bollinger and Parabolic signals. Thus, we are changing the potential profit/loss to the breakeven point. More risk-averse traders may switch to the 4-hour chart after the trade and place there a stop-loss moving it in the direction of the trade. If the price meets the stop level (93.5) without reaching the order (100), we recommend closing the position: the market sustains internal changes that were not taken into account

Fundamental Analysis

The US Department of Agriculture (USDA) forecasts a reduction in the export of oranges from Argentina in the 2019/2020 season to 70 thousand tons, or nearly 10% of the total harvest.Will ORANGE prices rise?

The USDA expects a reduction in early oranges harvest in Brazil by 30% in the 2020/2021 season compared to the previous 2019/2020 season. The Brazilian agricultural agency Cepea agrees with this assessment. A low harvest is a result of the drought in Brazil in September-October 2019. Another positive factor for orange juice may be the decision of the US Senate to resume the allocation of funds to Florida to treat all tourists with orange juice free of charge as a part of the "VISIT FLORIDA" marketing program. The authorities of China's Chongqing city assume that fresh fruits and oranges may alleviate the state of patients with coronavirus.This can stimulate demand.

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