WHEAT Technical Analysis | WHEAT Trading: 2018-02-15 | IFCM UK
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WHEAT Technical Analysis - WHEAT Trading: 2018-02-15

Drought bullish for wheat prices

Drought conditions are expected to continue across US south western Plains. Will the wheat price resume advancing?

Radiant Solutions forecast indicated dry weather across the south western Plains over the weekend, with little likelihood of showers next week. Continued drought conditions are bullish for wheat, data showing the US exported 487,902 tons of wheat last week, up from 324,794 tons in the same week of 2017 also supporting wheat prices.

Wheat

On the daily timeframe WHEAT: D1 is edging lower after hitting five-month high Tuesday. The price is above the 50-day moving average MA(50). which is set to cross the 200-day moving average MA(200) from below. It will constitute the bullish chart pattern Golden Cross when that happens.

We expect the bullish momentum will continue after the price closes above the upper Donchian bound at 476.6. A price point above that level can be used as an entry point for a pending order to buy. The stop loss can be placed below the last fractal low at 447.5. After placing the pending order the stop loss is to be moved to next fractal low following Parabolic signals. Thus, we are changing the profit/loss ratio to the breakeven point. If the price meets the stop loss level (447.5) without reaching the order (476.6), we recommend cancelling the order: the market sustains internal changes which were not taken into account.

Technical Analysis Summary

PositionBuy
Buy stop Above 476.6
Stop loss Below 447.5

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This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.

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