World grain consumption is growing faster than its production
In this review, we suggest considering the personal composite instrument (PCI) "Wheat versus Russian ruble". It grows in case of the increasing wheat price in the global market and the weakening of the Russian ruble. Is there a possibility for the <a href="https://www.ifcmarkets.com/en/trading-conditions/personal-instrument-pci/wheat-rub
?utm_source=financemagnates&utm_medium=Profile_listing&utm_campaign=News">WHEAT/RUB prices to increase?
On the daily timeframe, WHEAT/RUB: D1is in the neutral trend near the 200-day moving average line. Further price increase is possible in case of the further decrease of the Bank of Russia rate and the reduction in the world wheat crop.
- The Parabolic indicator gives a bullish signal.
- The Bollinger bands have narrowed, which means lower volatility.
- The RSI Indicator is below 50. It has formed a positive divergence.
- The MACD Indicator gives a bullish signal.
The bullish momentum may develop in case WHEAT/RUB exceeds the Upper Bollinger band, the three last fractal highs and the 200-day moving average line at 26500. This level may serve as an entry point. The initial stop loss may be placed below all the last fractal lows, the 5-month low, the lower Bollinger band and the Parabolic signal at 24700. 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 at 24700 without reaching the order at 26500, we recommend cancelling the position: the market sustains internal changes that were not taken into account.
Summary of technical analysis:
| Position | Buy |
| Buy stop | above 26500 |
| Stop loss | below 24700 |