First let's take a look what happened between China and United States.
FUNDAMENTAL VISION
-At the beginning of 2018, United States started a trade war with China, imposing tariffs on different products.
-In response to this measure, the Chinese government imposed tariffs on US products including some raw materials, the main product exported by the United States to China.
-In relation to this, there was an excessive decrease in exports, reaching the minimum quantity exported in the last 8 years.
-By decreasing the demand for products, this led to a decline in prices. In the case of soybean, we saw a few days ago how the price reached the minimum since 2008.
TECHNICAL VISION
WHEAT WEEKLY CHART
SOYBEAN WEEKLY CHART
-We observe that price behavior was pretty similar in both assets.
-In case of Soybean, the first down move was stronger than the Wheat, but then both of them started a similar consolidation/accumulation process to continue the down move.
-In the case of Wheat, price did a -18% movement since the previous Max., and then formed a flag pattern that lasted around 5 months. The breakout was perfect, and the bearish trend continued with a -16% movement. In total the downside movement of Wheat was around -28%.
-The first down move of Soybean, was around -24%. The pattern of consolidation was an ascending wedge for about 6 months, in which the movement after the breakout was slow at the beginning, but then it dropped on a -12% move.
FUNDAMENTAL VISION
-At the beginning of 2018, United States started a trade war with China, imposing tariffs on different products.
-In response to this measure, the Chinese government imposed tariffs on US products including some raw materials, the main product exported by the United States to China.
-In relation to this, there was an excessive decrease in exports, reaching the minimum quantity exported in the last 8 years.
-By decreasing the demand for products, this led to a decline in prices. In the case of soybean, we saw a few days ago how the price reached the minimum since 2008.
TECHNICAL VISION
WHEAT WEEKLY CHART
SOYBEAN WEEKLY CHART
-We observe that price behavior was pretty similar in both assets.
-In case of Soybean, the first down move was stronger than the Wheat, but then both of them started a similar consolidation/accumulation process to continue the down move.
-In the case of Wheat, price did a -18% movement since the previous Max., and then formed a flag pattern that lasted around 5 months. The breakout was perfect, and the bearish trend continued with a -16% movement. In total the downside movement of Wheat was around -28%.
-The first down move of Soybean, was around -24%. The pattern of consolidation was an ascending wedge for about 6 months, in which the movement after the breakout was slow at the beginning, but then it dropped on a -12% move.
Penerbitan berkaitan
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penerbitan berkaitan
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.