Strategy Centre

Analysis & Views

Corn, wheat & soybeans bounce back in October, but will the recovery continue?

Written by admin

Jason Sen 7 b&w caption

Grains have taken a beating this year, falling significantly throughout the summer months, but have staged a good recovery throughout October. Is this likely to be sustained into November or are these markets running out of gas? We will start by looking at the daily chart for corn. If you are a regular follower of my articles for InterTrader.com you will know I am a big fan of Fibonacci levels. In the chart above you can see that corn has managed to stage a good recovery to the first 23.6% Fibonacci retracement target and resistance at 364/365. Although we managed a little spike above here on 28 October we halted at the 100-day moving average and failed to close above that important Fibonacci resistance. This therefore cannot be counted as a break higher. You can see how there is congestion from late-July lows and much of the price action through August, that coincides with this Fibonacci level, has given that resistance extra weight. As I write we are hovering around the 365 level and you can see that the stochastic oscillator has been sitting in overbought territory for the last…

Full article

Webinars

Strategies

FTSE 100: one bad month does not end a four-year bull market

Written by admin

steve w background

The problem with the indices right now is that they are over-invested and over-exposed. With ultra-low interest rates comes an ultra-low incentive to put money in the bank. As 1% of the world’s population now owns 50% of the wealth where does all this money go? With indices and top blue-chip companies offering massive dividends and holding huge cash reserves, it’s not hard to see why the wealthy elite would rather put their money in Google than, say, Greek debt. The problem with the old investment model of a ‘balanced portfolio’ is that, without appropriate interest rates, steady bond prices and stability, that traditional model does not work. Ultra-wealthy people are not looking for massive returns; they are rich enough. When we see stock corrections this is not the retail market. This is institutions and large investors taking profit at the top. When large investors sell the moves are huge, over-exaggerated, a ‘flash-style crash’. This is sheer volume, not necessarily fear or panic-selling. The press love to attribute news to big moves. Russia, Ebola, QE ending… these are all known and have been for months. Technical selling accounts for 80%…

Full article

Trading Signals

This content is for information purposes only and should not be construed as trading advice.

apply for an account

Share InterTrader

Trading Tools

Learning Academy

Economic Calendar

Market News

Subscribe to Daily Market Brief

Your address will not be passed to any third party

More Trading Tools

Apply for a live trading account to received access to more free trading tools, including:

apply for an account

Spread betting and CFD trading both carry a high level of risk to your capital with the possibility of losing more than your initial investment. These products may not be suitable for all investors, and are only intended for people over 18. Please ensure that you are fully aware of the risks involved and, if necessary, seek independent financial advice. Stops are automatically allocated to each trade and if triggered are subject to market gaps unless you specified for your trade to be guaranteed. InterTrader.com is a trading name of London Capital Group Ltd (LCG) which is registered in England and Wales under registered number 3218125. LCG is authorised and regulated by the Financial Services Authority. Registered address: 6 Devonshire Square, 2nd Floor, London, EC2M 4AB.

TradeBack is a trademark of InterTrader.com. Apple, the Apple logo and iPhone are trademarks of Apple Inc., registered in the U.S. and other countries. iPad is a trademark of Apple Inc.