Wheat finds support? Looking at the July Wheat futures ZWN2019 , the price bounced off of support yesterday and experienced some follow through buying for a higher close today. For analysis purposes, I would call this a long play with a target set for the $5.35 price range.
Couple of things I like looking at this chart is the positive trending RSI as well as the solid bounce off of support on the bottom. Overall this chart is trending lower, but I believe there could be short term profit potential on the long side today. A breakout above the 21 day moving average as well as above the 50 day moving average would be beneficial to a long sided trade. Though pressure at the moving average could likely allow bears to take control and push the price toward support.
Based on the intraday close I expect some pull back from potential profit taking. The 3 hour view shows a bearish trend reversal in the bar chart, and I wouldn't be surprised to see the price fall back to the $5.21-5.23 area before making a move higher. An entry in that area would be ideal to maximize trade potential. Looking at a weekly view, if the price continues strength tomorrow and Friday we could be looking at a bullish trend reversal. Will have to monitor to see how the week closes.
Everything stated above is solely my opinion and by no means a recommendation for a trade. I may or may not hold positions in the instruments I analyze.
Lets see where this one goes.
Cheers,
L.R.
