El Nino announced to make appearance
Today we examine the &&Grain_4 PCI. It includes wheat, corn, soybean and oats
in equal volumes of 100 bushels, so the given personal composite
instrument is suitable for portfolio investment. Japan Meteorological
Agency and Australian Bureau of Meteorology were the first ones to
announce the appearance of a natural phenomenon El Nino this year. Last
time it was registered in 2009 and caused severe drought in India over
40 years. Weather conditions took a turn for the worse on the Eastern
hemisphere, causing a marked upsurge in food prices. Now Indian
meteorological agencies estimate the probable occurrence of El Nino at
70%.
The &Grain_4:D1 chart shows signs of an uptrend movement
start and the price crossed the previous fractal high. Bollinger bands
have widened. The last candlestick on the
MACD histogram chart closed below the signal line and the zero
level, which can be considered a bullish signal. Parabolic also
indicated a buy signal. Bars on the RSI chart are moving up and formed a
bullish divergence. The last bar is currently located below 50. We deem
that a bullish momentum might be formed after the &Grain_4
candlestick is being closed above Parabolic points and the second
fractal high at 366. Stop loss is to be placed below the first formed
Parabolic point. This level can currently act as a support line (353).
After pending order placing, Stop loss is to be moved every four hours
to the next fractal low, following Parabolic and Bollinger bands
signals. The most careful traders can switch to the H4 timeframe after
order execution, placing Stop loss and moving it according to the price
direction. Thus, we are changing the probable profit/loss ratio to the
breakeven point. If the price meets the Stop loss level without reaching
the order, we recommend cancelling the position: the market sustains
internal changes which were not considered.
