CAN INDIVIDUAL INVESTORS BENEFIT FROM TECHNICAL ANALYSIS IN MARKETS OF SOFT COMMODITIES? EMPIRICAL STUDY FOR 2010–2018 Cover Image

CAN INDIVIDUAL INVESTORS BENEFIT FROM TECHNICAL ANALYSIS IN MARKETS OF SOFT COMMODITIES? EMPIRICAL STUDY FOR 2010–2018
CAN INDIVIDUAL INVESTORS BENEFIT FROM TECHNICAL ANALYSIS IN MARKETS OF SOFT COMMODITIES? EMPIRICAL STUDY FOR 2010–2018

Author(s): Anna Górska, Monika Krawiec
Subject(s): Present Times (2010 - today), Financial Markets
Published by: Szkoła Główna Gospodarstwa Wiejskiego w Warszawie
Keywords: soft commodities; technical analysis; profitability of technical rules;

Summary/Abstract: After the 2008 financial crisis, many investors diversified their portfolios with different commodities, including the so-called softs. This paper aims to answer the question of whether individual investors can benefit from technical analysis on soft commodity markets. The empirical study is based on daily quotations of six soft commodities: coffee, cocoa, sugar, cotton, rubber and frozen concentrated orange juice from 2010 to 2018, and investigates the profitability of applying indicators and oscillators based on moving averages with different length. The results show that the application of five-day simple and weighted moving averages and momentum oscillators was most effective, providing positive returns in five out of six soft commodities markets.

  • Issue Year: 19/2020
  • Issue No: 2
  • Page Range: 25-32
  • Page Count: 8
  • Language: English
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