Various factors from fundamentals to technicals indicate that wheat
might be a good candidate for a long position. First, the latter part of October had enough momentum to punch through the resistance indicated by the Ichimoku cloud
. Next, we see consecutively higher lows indicated by the trend lines
. Finally, we note that there is a relative vacuum area from above. The fact that the price is consolidating around this level may indicate that wheat
will break out soon. The bullish ABCD
pattern further confirms this assertion. The MACD
indicate that this is an optimal time to buy.
Also note that the fundamentals suggest that the demand for wheat
may rise due to a decease in Saudi production. Believe it or not, Saudi Arabia is a big producer of wheat
for the middle east.