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ZW | Wheat | Info

The Wheat Futures (ZW) market is currently in oversold territory across all timeframes. On the 30-minute chart, the RSI is below 10, a condition that is exceptionally rare and indicative of potential exhaustion in selling pressure.

Analysis:
Overall Trend: The overall trend remains bearish, as confirmed by the series of lower highs and lower lows visible on the chart.
Expectation: Despite the bearish trend, I anticipate the possibility of a counter-rally from the current levels. However, there is a lesser probability of the price moving further down to test the next major support, which I have identified as the extreme pain point.

Actionable Plan:
Key Levels: The chart features clearly marked Bullish (530’4) and Bearish (527’4) lines. These serve as critical breakout zones.
A break above 530’4 signals a safer entry for a long position, targeting the bullish retracement levels.
A break below 527’4 confirms further downside momentum, justifying a short position, targeting the bearish support levels.

Price Targets:
Bearish Targets: Calculated based on support zones, with the immediate levels at 520’0 and 514’2.
Bullish Targets: Based on Fibonacci retracement levels, which align precisely with key resistance areas.

Conclusion:
I recommend waiting for a confirmed breakout of either the Bullish Line (530’4) or the Bearish Line (527’4) before entering a position. This approach minimizes risk while capitalizing on the momentum toward clearly defined price targets.

Trade closed: target reached

TP1 hit

shkspr

no pain, no gain
Unveiling illusions, revealing wealth

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shkspr

no pain, no gain
Unveiling illusions, revealing wealth

Also on: