Tuesday, June 1, 2021

Wheat Might Make Some Bread




July Wheat Futures looking Bullish today. Picked up a micro contract ($10/pt) for 693 1/2 at 14:11 ET. Here's what I saw on the Daily chart:

  • Bullish Engulfing candlestick pattern
  • Bounce off previous Support/Resistance at 672 3/4
  • Bounce off 50sma
  • Close above 8ema
  • Increased volume
Set the Stop just under the previous swing low at 639 1/2.
Targeting the 127.2% Fibonacci Extension which equals the D point of the AB=CD at 817 1/2.

Summary:

Entry: 693 1/2
Stop: 639
Target: 817

Risk: 693 1/2 - 639 = 54 1/2 * $10/pt = $545
Reward: 817 - 693 1/2 = 123 1/2 * $10/pt = $1,235
R:R = 1235/545 = 2.3:1 pretty good.

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