Copyright Barchart
March soft red winter wheat futures (ZWH26) present a buying opportunity on more price strength. See on the daily bar chart for the March soft red winter wheat futures that prices are now trending up and have just hit a 2.5-month high. See, too, at the bottom of the chart that the moving average convergence divergence (MACD) indicator is in a bullish posture as the blue MACD line is above the red trigger line and both lines are trending up. The bulls have the near-term technical advantage and have momentum. Fundamentally, the weekend news that China is seeking to buy U.S. wheat, after the U.S.-China trade truce last week, amid easing U.S.-China tensions, has only added to ideas of a tightening global supply and demand balance sheet for wheat. A move in March SRW wheat futures above chart resistance at today’s high of $5.57 1/4 would become a buying opportunity. The upside price objective would be $6.20 or above. Technical support, for which to place a protective sell stop just below, is located at $5.30. IMPORTANT NOTE: I am not a futures broker and do not manage any trading accounts other than my own personal account. It is my goal to point out to you potential trading opportunities. However, it is up to you to: (1) decide when and if you want to initiate any trades and (2) determine the size of any trades you may initiate. Any trades I discuss are hypothetical in nature. Here is what the Commodity Futures Trading Commission (CFTC) has said about futures trading (and I agree 100%): Trading commodity futures and options is not for everyone. IT IS A VOLATILE, COMPLEX AND RISKY BUSINESS. Before you invest any money in futures or options contracts, you should consider your financial experience, goals and financial resources, and know how much you can afford to lose above and beyond your initial payment to a broker. You should understand commodity futures and options contracts and your obligations in entering into those contracts. You should understand your exposure to risk and other aspects of trading by thoroughly reviewing the risk disclosure documents your broker is required to give you.
