WEAT (Wheat ETN) appears to be in the process of a flush-out, stop-clearing move below the previous lows while deeply oversold. While certainly a “catch-a-falling-knife” trade, I believe that the R/R for a long entry here with a stop somewhat below offers a very favorable R/R. As such, WEAT will be added as an Active Long Swing Trade as well as a Long-term Trade idea as I will likely add additional price targets, should the charts of WEAT, $WHEAT (continuous futures contract) and /ZW (wheat futures) exhibit bullish price action in the coming weeks that may indicate a likely bottom in wheat prices.

The bullish falling wedge on this /ZW (wheat futures) 60-minute chart indicates that that wheat futures are likely poised for at least an 8% rally up towards the 453.3 level on a breakout above this 60-min bullish falling wedge pattern. Those adverse to trying to catch a falling knife could wait for a 60-minute breakout & candlestick close above this falling wedge pattern as that would increase the odds of this trade panning out.

ZW 60-min Aug 18th

ZW 60-min Aug 18th

WEAT will be added here as an Active Long Swing Trade as well as an Active Long-term Trade with a suggested stop on a daily close below 6.40, about 2½% below current levels. The price targets at this time are T1 at 6.92 & T2 at 7.18. The suggested beta-adjustment at this time is 0.9 although I might consider increasing that to as much as 1.2, should we get some decent evidence of a bottoming process in the coming days or weeks.