Kumowizard
Long

Wheat - Will it stay bearish, or should the bears take cover?

CBOT:ZW1!   WHEAT FUTURES - ECBT
41 1 2
Soybean Oil             and Soybeans             are turning bullish , Corn             may follow it with a bullish break too. Wheat             is certanly the weakest among the grains, the question is: can it stay bearish alone? I smell a small possible bear trap, let me show you why.

Weekly:
-Active bearish trend and bearish Ichimoku setup. Kumo top is at 600, downtrend line is catching down to Kumo.
- Weekly Hikin Ashi candle turns bearish with bearish haDelta cross
- Now the major question is if Wheat             can continue its bearish trend making lower low in coming weeks, or else it prints a higher low and starts consolidation still within the trend channel.

Daily:
- Actually on the daily time frame we see soemthing interesting. The horizontal key resistance below the Kumo blocked the bearish extension yesterday. If Price can not make a lower low, then the bearish Kumo breakout won't be validated, Chikou will hit Price candles, and market will pull back towards the Kumo again, turning Ichimoku picture back to neutral. In this case we may see a short term double bottom, with a possible measured target to ard 580.
- Heikin Ashi can print a reversal signal today in form of a green candle. haDelta has also given a signal of decreasing bearish momentum .
- Starting from 510 and especially above 520 bears can get nervous.

Strategy: Defenately Corn             , Soybean Oil             and Soybeans             have been (and still are) better candidates for long, but given the daily possible Heikin Ashi reversal signal, I try some bottom fishing in Wheat             as well. I opened small long position with stop below 490. First tgt             is 540, second tgt             is 580.
Krio
2 years ago
cool
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