Exchange news. Future contract on rice (ZR ticker) has dropped by 18% during the last month. The fall has been so steady that those who entered SHORT and pulled stops at bar D1 tops are still maintaining their positions.
Moreover, rice decline during the week has been partially caused by MF Global bankruptcy and related sell-offs. Rice is fundamentally strong because of two reasons: if economy grows, demand for rice will also rise, as it usually happens. If crisis gets worse, more currency will have to be printed... and rice will keep rising anyway.
Recommendation from Masterforex-V Academy Trading System: wait until a sloping channel is passed and then find a point of entry into LONG with a minor stop-loss. Try to earn profit at least by using protective stop-losses, as there is an about 10% potential for moving.
Always remember about stops, for it is of major importance to minimize loss if you are wrong and take the entire profit if you are right.
