Wheat Elliott Wave analysis
Since its peak in March 2022, Wheat prices have dropped nearly 61%, falling from over 1360 to around 530. However, this bearish cycle appears to be nearing its end, and a multi-month bullish phase may soon begin, correcting the over 28 months of sell-off.
Daily chart analysis
On the daily chart, the decline from the March 2022 peak of 1364 has been unfolding as an impulse wave structure. This structure is now in its final stage, with the 5th wave close to completing an ending diagonal pattern. Although Wheat prices could still drop to 500 or slightly below, sellers should be cautious. The coming weeks and months will likely see short positions being exited, making way for new bullish positions.
H4 chart analysis
The H4 chart shows the sub-waves of wave (5) of the diagonal wave 5 (circled) on the daily chart. Wave (5) should complete a corrective 3-wave structure. It appears wave A has been completed with a bearish impulse from the top of May 2024 and the current bounce from the low of July 2024 is for wave B correction.
While there is still more room for the bearish trend from March 2024 below $500, it’s clear the commodity is approaching the final leg before a much bigger and longer bullish reaction than the previous bounces since 2022 began.
Technical analyst: Sanmi Adeagbo.
Wheat Elliott Wave analysis [Video]
As with any investment opportunity there is a risk of making losses on investments that Trading Lounge expresses opinions on.
Historical results are no guarantee of future returns. Some investments are inherently riskier than others. At worst, you could lose your entire investment. TradingLounge™ uses a range of technical analysis tools, software and basic fundamental analysis as well as economic forecasts aimed at minimizing the potential for loss.
The advice we provide through our TradingLounge™ websites and our TradingLounge™ Membership has been prepared without considering your objectives, financial situation or needs. Reliance on such advice, information or data is at your own risk. The decision to trade and the method of trading is for you alone to decide. This information is of a general nature only, so you should, before acting upon any of the information or advice provided by us, consider the appropriateness of the advice considering your own objectives, financial situation or needs. Therefore, you should consult your financial advisor or accountant to determine whether trading in securities and derivatives products is appropriate for you considering your financial circumstances.
Recommended Content
Editors’ Picks
EUR/USD clings to strong daily gains above 1.1000 after US CPI
EUR/USD trades at its highest level since early January above 1.1000 in the American session on Wednesday. The US Dollar struggles to find demand after July inflation data came in line with market expectations, allowing the pair to push higher.
GBP/USD holds near 1.2850 following UK and US inflation reports
GBP/USD struggles to gain traction and trades marginally lower on the day at around 1.2850. Earlier in the day, softer-than-expected inflation data from the UK weighed on Pound Sterling but July CPI figures from the US limited the USD's gains.
Gold drops below $2,460 as markets assess US inflation figures
Gold remains under modest bearish pressure and trades below $2,460 in the second half of the day on Wednesday. Although the US Dollar stays on the back foot after the July CPI data, XAU/USD finds it difficult to push higher as sentiment turns mixed.
Maker price poised for rally following Grayscale's launch of MakerDAO Trust
Maker (MKR) saw a 6.3% price rally on Tuesday and remains up 0.3% at $2,147 on Wednesday. A negative spike in MKR's Exchange Flow Balance and rising open interest signal a bullish trend.
Federal Reserve scenarios: More twists and turns to come
Having priced a high chance of an inter-meeting Fed rate cut last week, interest rate expectations have moderated in the wake of better data and calming words from Fed officials.