In this article, we will explore the technical analysis of wheat futures contracts and provide price predictions based on current market trends. We will also discuss potential trading strategies and risk management for those interested in wheat-related assets.
- Wheat futures crossed a rising wedge on the 4-hour time frame
- Next possible target: 700 round numbers
- Possible re-testing and entrance
entrance
In financial trading, entry is simply the point at which a trader enters the market by either buying or selling a particular asset. Entries have two attributes, i.e. the price at which the trader enters, and the time at which the trader entered. There are a number of different entry types in trading. The most common is the market order. A market order is a manual order that allows a trader to enter the market immediately on demand at the current market price. Dealer type
In financial trading, entry is simply the point at which a trader enters the market by either buying or selling a particular asset. Entries have two attributes, i.e. the price at which the trader enters, and the time at which the trader entered. There are a number of different entry types in trading. The most common is the market order. A market order is a manual order that allows a trader to enter the market immediately on demand at the current market price. Dealer type
Read this term points for investors and traders
- Long-term price movements and potential targets
Wheat Futures Technical Analysis: Rising Wedge Breakout
A recent technical analysis on the 4-hour time frame showed that Wheat (ZW) futures contract has exited a rising wedge. This bullish pattern indicates that the next possible target for ZW could be the round number of 700.
Possible retest and entry points
Investors and traders may want to time their entries with a possible retest of the falling wedge, realizing that it may not happen and they may miss their entry points. A balanced approach could be to expand the trade, ensuring risk is managed while taking advantage of potential price movements.
Always trade at your own risk and consult ForexLive.com for additional views on wheat futures technical analysis and price forecasts.
Wheat futures on the weekly time frame: building a base
Looking at the weekly time frame, wheat futures witnessed a strong downward trend from the all-time high of 1430.6, and it currently occupies about 52.3% below that level. However, the market may start to build a base and find support in an area that has seen consolidation and price reactions in the past. This could indicate an interesting area to bet on building a base for wheat and potentially moving higher.
Possible long-term goals: 800 round number
If the base building scenario plays out, traders and investors may consider aiming for a long-term target of the 800 round figure, close to the previous highs. For those who are long, it may be worth leaving a portion of the position (say, 20% or more) to take advantage of a potential move towards 800.
Various instruments, such as call options, CFDs or futures contracts, can be used to play into this potential long-term movement in wheat futures.
In short, the technical analysis of wheat futures indicates a breakout from the rising wedge, and the next potential target is the round 700 figure. Investors and traders should keep an eye on possible retest levels and entry points, as well as long-term targets around the 800 round number. As always, trade at your own risk and visit ForexLive.com for additional opinions and insights on wheat futures price forecasts.