At the beginning of the 2008 while the sub prime crisis start to be feared by all the wheat touched peaked, since then until mid 2010 the price dis-inflated severely (lost around 65% at the time from the $1320’s to a very better $480’s the contract.
But as the recovery geared traction from 2010 it reduced the lost of price more than half when made at end of 2012...
Looking back and finding patterns is always easy. The key is finding pattern at the right side of the chart. I posted a chart a few hours ago with what is happening right now in the wheat market. This chart is just proof that technical analysis works on wheat. The best patterns as you can see are classic technical analysis price formations like double tops and...
This is my first published chart with a custom indicator. Until now, all my charts had 3 manual plotted EMAs, making up a Wave. Now, thanks to user LazyBear, I have an indicator which plots all three of them, making it much easier to change their value. I will be using this indicator from now on. Thank you LazyBear for your great work!
Wheat is currently standing...
LOOKING AT THE DAILY GRAPH OF WHEAT, WE SEE A POSITIVE DIVERGENCE AND A POSSIBLE LONG POSITION CAN BE TRIED FROM 550 (SUPPORT) AREA WITH A T/P AT 578 AREA.
TRIX BEING TOO LOW CAN BE AN ADDITIONAL CONFIDENCE FOR THIS POSITION.
S/L SHOULD BE AREOUND 545 AREA.
Volatility as an indicator | Wheat Futures + WIV(wheat vol index) + SMI
No active signal at the moment, just an idea I'll be tracking.
Enter SHORT on spike DOWN in Wheat Vol Index of at least 7 points (highlighted with red boxes).
Exit on clean crossover of SMI and its red signal line.
Green boxes show upward (losing) extent of move during holding period. Red...
even tough it seems a little bit doubtful, we may be seeing a long move to 590 area in wheat,
the bottom might be in 560 area, so the stops should be placed around 550-555 area.
RSI also shows positive divergence, which may also be an additional positive proof...
1)this is a 1/ZCW
2)COT showing commercials bullish on grains:bullish for grains
3) corn likely to crunch the spread with wheat: bullish for zcw
4)it would be the 6th bullish signal given by 1/zcw on the ES if the correlation (CC) tanks
Wheat often makes seasonal lows in early June. It seems is coming out from a tight consolidation around the 700.0 level (20EMA). Target would be 739.0 at the median line, also late march high - possible resistance.
