Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Drought Bullish For Wheat Prices: 2018-02-15

Published 02/15/2018, 08:24 AM
Updated 12/18/2019, 06:45 AM

Drought bullish for wheat prices:

Drought conditions are expected to continue across US South Western Plains. Will the Wheat price resume advancing?

Radiant Solutions forecast indicated dry weather across the South Western Plains over the weekend, with little likelihood of showers next week. Continued drought conditions are bullish for wheat, as data shows the US exported 487,902 tons of wheat last week, up from 324,794 tons in the same week of 2017, also supporting wheat prices.

Wheat D1 Chart

On the daily time frame WHEAT: D1 is edging lower after hitting a five-month high on Tuesday. The price is above the 50-day moving average MA(50), which is set to cross the 200-day moving average MA(200) from below. It will constitute the bullish chart pattern Golden Cross when that happens.

  • The Donchian channel gives a neutral signal: it is flat.
  • The Parabolic indicator has formed a buy signal.
  • The MACD indicator gives a bullish signal: it is above the signal line and the gap is widening.
  • The stochastic oscillator is falling and has not reached the overslod zone.


We expect the bullish momentum will continue after the price closes above the upper Donchian bound at 476.6. A price point above that level can be used as an entry point for a pending order to buy. The stop loss can be placed below the last fractal low at 447.5. After placing the pending order the stop loss is to be moved to next fractal low following Parabolic signals. Thus, we are changing the profit/loss ratio to the break even point. If the price meets the stop loss level (447.5) without reaching the order (476.6), we recommend cancelling the order: the market sustains internal changes which were not taken into account.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Technical Analysis Summary:

Position - Buy
Buy stop - Above 476.6
Stop loss - Below 447.5

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.