DBC commodity indexDBC commodity index, Commodity prices have stalled but should continue higher as mother nature continues to go haywire interfering with the growth of crops. with a lower yield and ever increasing demand producer prices must raise to accommodate for the hardships therefor that price increase should become reflected on the index price as well.
Wheat
Wheat bearish trendIf gives breakdown below the Rising Wedge short for given targets.
Also targets can act as support and reversal zone. Follow red/ green arrows according to price action.
Wheat Futures September 2021 ContractThe pattern is currently doing a sideways or consolidation in 1 HR and below. It looks like the selling pressure is present unless if its breaks the red line resistance with a strong buying force. Other confluence for shorts are:
1) Pattern making a reversal at a 61.8 Fibo level
2) Seller coming in, can be seen in Volume
3) Bullish momentum getting less and less
4) Price break 100MA, but yet to respect it.
Entry guidelines:
- I will wait for the price to break the trendline and the support area before going into a position targetting 160-170 ticks below.
Good luck!
Elliott Wave Analysis: WHEAT Is Still Looking For The BottomHello traders and investors!
Today we will talk about commodities, specifically WHEAT, in which very interesting development.
Well, as you know, commodities have been very bullish for the last year and some of them made strong and impulsive rise, but this is not the case for WHEAT, as we see slower price action and corrective wave structure from the lows.
We are talking about (A)-(B)-(C) flat correction where wave C has ended within an ending diagonal (wedge) pattern. The whole structure belongs to a higher degree wave IV correction of a bigger monthly wedge shape that can send the price back to lows for wave V before market finds the bottom.
What we want to say is that maybe it's time for a slow down in the commodity market, where WHEAT could be on of the weakest, especially after recent strong and impulsive decline back below lower ending diagonal pattern, which confirms that correction from the lows is completed, but real bears may show up below 600 region!
Be humble and trade smart!
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Grains will shock youWith all the drama of last year and many areas locked down, one of the big sufferers was agriculture. Much of last years yields went to waste and panic buying occured. Which I'd guess also went to waste for the most part.
As you can see on my chart I'm expecting a sizeable pullback in price before the event, which is completely normal.
let it collect the orders down there and get in where you feel comfortable.
From there hold way into 2022. I wouldn't like to call the top on this, but it'll be impressive.
Checkout soybean and corn also. Why do you think they drove up so hard in price?
Happy trading and don't long just yet. (July?).
Wheat setting up all too perfectly.Looks like a perfect 5 wave Elliot followed by 50% ABC correction.
I'm starting to look for these more, and I feel like I'll be able to trade them soon. For the moment, the only trades I'm getting into are when the market tells me which way it's going and I get in along with it. That means linebreaks, so I'm waiting for the down-trendline to break to the upside.
SHORT XWM21 (Wheat Futures May21)We have been on a bull run in the wheat market since June of last year. However the past couple months we hit a high followed by consolidation between 635-685. We formed a double top and price is looking pretty heavy. We broke out of a multi-month support level and price came back to test this area and looks like it is now a new resistance. Looking to take partial profits at 580, 540 and perhaps even a move to take out the lows made at June 2020.
Cycles top very soon, time to take profit.Check my related idea. Daily cycles that fuelled the recent move top somewhere around the 22nd of January and the longer term cycle is down till late February. All upside price targets have been reached and it's time to take profit and consider short. To see real weakness wheat has to close below 650.