By IFCMarkets
The orange juice reserves reduced in the US
The US Department of Agriculture (USDA) reported a decrease in orange juice reserves. Will its prices grow?
The frozen orange juice reserves decreased to 544.4 mln pounds for June 30, 2017, compared with the reduction of 575.4 mln or by 5.4% for May 31, 2017. Compared with the beginning of July of the last year, they declined by 29%. The export of orange juice from Brazil decreased by 17% from July 2016 to June 2017 compared to the same period of the last year and amounted to 890 thousand tonnes. This is the lowest volume for the last 25 years.
On the daily timeframe, ORANGE: D1 approached the resistance line of the downtrend. To open a Buy position, it needs to be overcome. The further price increase is possible in case of a further reduction of the orange juice reserves in the US and the decrease of the citrus fruit crop in Brazil.
The bullish momentum may develop in case ORANGE exceeds the upper Bollinger band and the last fractal high at 141. This level may serve as an entry point. The initial stop loss may be placed below the last fractal low, the Parabolic signal and the 15-month low at 125. 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 125 without reaching the order at 141 we recommend cancelling the position: the market sustains internal changes that were not taken into account.
Free Reports:
| Position | Buy |
| Buy stop | above 141 |
| Stop loss | below 125 |
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