Wheat Technical Analysis Summary
Buy Stop։ Above 804
Stop Loss: Below 734
Wheat Chart Analysis
Wheat Technical Analysis
On the daily timeframe, WHEAT: D1 moved up from the downtrend. A number of technical analysis indicators formed signals for further growth. We do not rule out a bullish movement if WHEAT: D1 rises above its most recent high: 804. This level can be used as an entry point. The initial risk limit is possible below the Parabolic signal, 200-day moving average line and the last lower fractal: 734. After opening a pending order, we move the stop following the Bollinger and Parabolic signals to the next fractal low. Thus, we change the potential profit/loss ratio in our favor. The most cautious traders after making a trade can switch to a four-hour chart and set a stop loss, moving it in the direction of movement. If the price overcomes the stop level (734) without activating the order (804), it is recommended to delete the order: there are internal changes in the market that were not taken into account.
Fundamental Analysis of Commodities – Wheat
Investors fear a reduction in grain exports from Ukraine or Russia if political tensions escalate. Will the WHEAT quotes continue to rise?
Russia ranks 3rd in the world in wheat production, and Ukraine is 8th. In world wheat exports, Russia ranks 1st, Ukraine – 5th. Another positive factor for wheat may be the announcement by the United States Department of Agriculture (USDA) that its production in the US in 2021 will decrease to 1.64 billion bushels. This is 10% less than in 2020. As of December 1, 2021, U.S. wheat stocks stood at 1.39 billion bushels. This is 18% less than last year’s level.