Simplicity with Wheat - Support and resistance levels
Updated
Current prices are near previous lows. An increasing MACD and RSI indicates build up for a long opportunity.
Higher highs and higher lows have formed in the weekly chart for Wheat, signalling recovery from the long term downtrend.
For confirmation;
1. increasing MACD histogram - Check;
2a. overbought RSI levels - Check; and
2b. increasing RSI levels - Check;
3. Rebound from immediate support *
* note the blue icons indicate support / resistance levels. If this strong support is broken down, prices might continue downwards, bearing in mind the long term downtrend. Therefore, SL is to be set here (or slightly below).
Trade details
Stop loss: green line *
Expected profit: Nearing the resistance levels (see red icon) which coincides with a fibb level (0.786)
Expected duration: ~ 4 weeks (analysis is only done for intermediate term trade, although term potential is foreseeable)
Ratio
SL : Enter: TP
6.70 (risky) : 7.10 : 7.90 (conservative)
0.80/0.4 - Reward to risk at 2
Best trades^^
Higher highs and higher lows have formed in the weekly chart for Wheat, signalling recovery from the long term downtrend.
For confirmation;
1. increasing MACD histogram - Check;
2a. overbought RSI levels - Check; and
2b. increasing RSI levels - Check;
3. Rebound from immediate support *
* note the blue icons indicate support / resistance levels. If this strong support is broken down, prices might continue downwards, bearing in mind the long term downtrend. Therefore, SL is to be set here (or slightly below).
Trade details
Stop loss: green line *
Expected profit: Nearing the resistance levels (see red icon) which coincides with a fibb level (0.786)
Expected duration: ~ 4 weeks (analysis is only done for intermediate term trade, although term potential is foreseeable)
Ratio
SL : Enter: TP
6.70 (risky) : 7.10 : 7.90 (conservative)
0.80/0.4 - Reward to risk at 2
Best trades^^
Trade closed: stop reached
Closed, broke the support line and me tooNote
I look back at this from time to tie and think to myself, what a killer this one...
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