Preparing for the USDA report
Technical Analysis Summary Rough Rice: Buy
| Indicator | Value | Signal |
| RSI | Neutral | |
| MACD | Buy | |
| MA(200) | Neutral | |
| Fractals | Buy | |
| Parabolic SAR | Buy | |
| Bollinger Bands | Buy |
Chart Analysis
On the daily timeframe, Rice: D1 exceeded the last 3 upper fractals and approached the upper border of the ascending channel. It must be broken upward before opening a position. A number of technical analysis indicators formed signals for further growth. We do not rule out a bullish move if Rice rises above the 200-day moving average line and the upper Bollinger band: 12.9. This level can be used as an entry point. We can set a stop loss below the Parabolic signal, the lower Bollinger band and the last 3 lower fractals: 11.9. After opening a pending order, we move the stop loss to the next fractal low following the Bollinger and Parabolic signals. Thus, we change the potential profit/loss ratio in our favor. After the transaction, the most risk-averse traders can switch to the four-hour chart and set a stop loss, moving it in the direction of the bias. If the price meets the stop loss (11.9) without activating the order (12.9), it is recommended to delete the order: the market sustains internal changes that have not been taken into account.
Fundamental Analysis of -
Rainy weather in India can damage crops. Will Rice quotes grow ?
India Meteorological Department (IMD) reported that monsoon rains in India in 2020 will be higher than normal, the same as in 2019. Previously, such a situation with excess precipitation for 2 years in a row was observed only in 1958 and 1959. Rainy weather can reduce the rice yields, as well as cotton and soybeans.The publication of the estimate of the rice crops in the US by the United States Department of Agriculture (USDA) on October 9 may become a significant factor for quotes. Recall that the US rice stocks as of August 1, 2020 were 37% less than in the same period of 2019. The USDA in its September review expected a 22% increase in the US rice yields in the current 2020/2021 season. These data can affect quotes.