Wheat Completes Head and Shoulders Pattern, Target at 865
Updated
Trend Analysis
The main view of this trade idea is on the 15 Min Chart.
There appears to be a completed head and shoulders price pattern on the commodity Wheat. The left shoulder is around the low of 750.38, the head made a low of 750.38 and the right shoulder made a low of 757. The pattern is not at its original designation however appears to be a positive sign nonetheless. The neckline stands at the 779.37 and 779.87 highs. The completion of this pattern takes the commodity towards current price levels at the time of publishing. Expectations are for the trend in the commodity to continue towards 865. A stop loss order has been placed at 766, below Wheat’s neckline.
The Point and Figure Chart corroborates this bullish view. There was a close above the short (30-MA) medium (100-MA) and long (200-MA) moving averages. There has also been positive crossovers on these respective MAs. The Awesome Oscillator (AO) is above 0 and green and the RSI is above 50. The chart indicates that Wheat can rally towards 860.
The Daily chart shows a breakout of 804 resistance. Closing above this level indicates a bullish move for the commodity.
Recommendation
The recommendation will be to go long at market, with a stop loss at 766 and a target of 865. This produces a risk/reward ratio of 1.73.
Disclaimer
The views expressed are mine and do not represent the views of my employers and business partners. Persons acting on these recommendations are doing so at their own risk. These recommendations are not a solicitation to buy or to sell but are for purely discussion purposes. At the time of publishing I have exposure to Wheat.
The main view of this trade idea is on the 15 Min Chart.
There appears to be a completed head and shoulders price pattern on the commodity Wheat. The left shoulder is around the low of 750.38, the head made a low of 750.38 and the right shoulder made a low of 757. The pattern is not at its original designation however appears to be a positive sign nonetheless. The neckline stands at the 779.37 and 779.87 highs. The completion of this pattern takes the commodity towards current price levels at the time of publishing. Expectations are for the trend in the commodity to continue towards 865. A stop loss order has been placed at 766, below Wheat’s neckline.
The Point and Figure Chart corroborates this bullish view. There was a close above the short (30-MA) medium (100-MA) and long (200-MA) moving averages. There has also been positive crossovers on these respective MAs. The Awesome Oscillator (AO) is above 0 and green and the RSI is above 50. The chart indicates that Wheat can rally towards 860.
The Daily chart shows a breakout of 804 resistance. Closing above this level indicates a bullish move for the commodity.
Recommendation
The recommendation will be to go long at market, with a stop loss at 766 and a target of 865. This produces a risk/reward ratio of 1.73.
Disclaimer
The views expressed are mine and do not represent the views of my employers and business partners. Persons acting on these recommendations are doing so at their own risk. These recommendations are not a solicitation to buy or to sell but are for purely discussion purposes. At the time of publishing I have exposure to Wheat.
Trade closed: stop reached
Disclaimer
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