- Major trend is , but setup has some neutral bias on the weekly. In the last 4 months wheat has been trading around weekly Tenkan Sen, appr. 500 +/-
- Heikin Ashi shows undecision, haDelta has some positive divergence
- Right now from the weekly setup it is not possible to read with high confidence if price will continue or if it will shoot back up to the Kumo again?
- setup is neutral: Price is in/around the Kumo, trades at equilibrium now. Two days ago price made a higher low, so we have a minor bias. Upper resistance is at 540.
- Heikin Ashi gave a reversal buy signal yesterday. haDelta/SMA3 back above zero line and Oscillator switched to .
Now we have one question left: will it be able to break above Kijun Sen and the prompt Senkou B line?
I think 540-550 is possible to reach from this setup. The question is how to enter longs, as obviously our stop should not be lower than 485, while the basic rule is to reach a minimum 1:2 initially expected risk/reward ratio. So if anyone is thinking about a long position, optimal buy level would be 503-505.
Again, pls note that I refer to September contracts which is +5 to the soon expiring July.