Member @ixtlanian inquired in the trading room if WEAT in objective long re-entry position now? Based on both the charts of $WHEAT (continuous futures contract) and WEAT (wheat ETN) it would appear so. $WHEAT is close to backtesting this downtrend line following the recent breakout & divergent low, thereby offering another objective long entry or add-on while WEAT is approaching the former T1 level at 7.25.

As a former resistance level, the 7.25 area is likely to act as support now when tested from above. The fact that $WHEAT is backtesting the downtrend line (the chart below is an end-of-day chart reflective of yesterday’s close & does not account for today’s drop in $WHEAT prices yet) coupled with the fact that WEAT is coming up on decent price support makes a long entry anywhere from current levels down to the 7.25 level on WEAT an objective area to initiate or add to an existing long position with the appropriate stops below (based on your average cost basis & typical stop allowances).  WEAT is under consideration as another official long swing trade along with some of the other grain & non-grain agricultural commodities although I wanted to share my analysis on wheat for those interested or already long.