In this article, we will explore wheat futures technical analysis and provide a price forecast based on current market trends. We'll also discuss potential trading strategies and risk management for those interested in wheat-related assets.
Key Points for the wheat futures technical analysis video
- Wheat futures breakout of an ascending wedge on the 4-hour time frame
- Next probable target: 700 round number
- Potential retest and entry points for investors and traders
- Longer-term price movements and possible targets
Wheat Futures Technical Analysis: Breakout of Ascending Wedge
A recent technical analysis on the 4-hour time frame shows that wheat futures (ZW) have broken out of an ascending wedge. This bullish pattern suggests that the next probable target for ZW could be the 700 round number.
Possible Retest and Entry Points
Investors and traders may want to time their entries with a possible retest of the descending wedge, while being aware that it might not happen and they could miss their entry points. A balanced approach could be to scale into the trade, ensuring risk management while taking advantage of potential price movements.
Always trade at your own risk and consult ForexLive.com for additional perspectives 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 have experienced a strong downtrend from their all-time high of 1430.6, currently sitting about 52.3% below that level. However, the market may be starting 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 wheat building a base and potentially moving higher.
Potential Longer-Term Targets: 800 Round Number
If the base-building scenario plays out, traders and investors may consider aiming for a longer-term target of the 800 round number, close to previous highs. For those trading long, it could be worth leaving a portion of the position (e.g., 20% or more) to capitalize on a possible move towards 800.
Different instruments, such as call options, CFD contracts, or future contracts, can be used to play this potential longer-term move in wheat futures.
In summary, wheat futures technical analysis points to a breakout from an ascending wedge, with the next probable target being the 700 round number. Investors and traders should keep an eye on possible retest levels and entry points, as well as longer-term targets around the 800 round number. As always, trade at your own risk and visit ForexLive.com for additional views and insights on wheat futures price forecasts.