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WHEAT Technical Analysis - WHEAT Trading: 2022-11-02
Wheat Technical Analysis Summary
Above 909
Buy Stop
Below 800
Stop Loss
| Indicator | Signal |
| RSI | Neutral |
| MACD | Sell |
| MA(200) | Neutral |
| Fractals | Buy |
| Parabolic SAR | Buy |
| Bollinger Bands | Neutral |
Wheat Chart Analysis
Wheat Technical Analysis
On the daily time frame, WHEAT: D1 approached the downtrend resistance line and the 200-day moving average line. They must be broken up before opening a position. Some indicators of technical analysis have formed signals for a further increase. We do not rule out a bullish movement if WHEAT rises above the last high and the 200-day moving average line: 909. This level can be used as an entry point. The initial risk limit is possible below the Parabolic signal and the lower Bollinger line: 800. After opening a pending order, we move the stop following the Bollinger and Parabolic signals to the next fractal low. Thus, we change the potential profit/loss ratio in our favor. The most cautious traders, after making a trade, can switch to a four-hour chart and set a stop loss, moving it in the direction of movement. If the price overcomes the stop level (800) without activating the order (909), it is recommended to delete the order: there are internal changes in the market that were not taken into account.
Fundamental Analysis of Commodities - Wheat
Argentina may suspend grain exports due to drought. Will WHEAT quotes continue to rise?
According to the Rosario Grains Exchange, the wheat harvest in Argentina in the current 2022/2023 agricultural season may be only 13.7 million tons. This is much less than the preliminary estimate of the harvest in the previous season 2021/2022 in the amount of 23 million tons. Theoretically, the Argentinean government could limit wheat exports, but there is no exact information yet. The Buenos Aries Grains Exchange forecasts a higher wheat harvest of 15.2 million tones for the 2022/2023 season. Recall that in the 2021/2022 season, domestic consumption in Argentina amounted to 7.6 million tons. Earlier, in the 2022/2023 season, it was planned to export 8.9 million tons. In this case, there may be a risk of a shortage of wheat in the domestic Argentine market. Another positive factor for wheat quotes may be the suspension of the agreement on the sea export of wheat from Ukraine (Black Sea Grain Initiative). It should be noted that the overland export of Ukrainian grain will continue. In addition to all this, the United States Department of Agriculture (USDA) reported a very low quality of winter wheat crops in the US (Winter Wheat Condition).
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This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.
