WEAT daily July 25th
WEAT (Wheat ETF) will trigger a long entry on a break above this steep downtrend line. For a large part, commodities have been my bread & butter so far this year (pun intended) with a long-side trade on WEAT earlier this year (not posted on the site) following the break above that previous downtrend line as well some very lucrative trades in the miners, catching the bulk of both of the major rips in the gold & silver mining stocks this year (which are once again starting to look interesting as the pullback/consolidation that I was looking for to help work off off the recent divergences & overbought conditions may be complete…more on the miners soon). Copper, including the Copper ETF, JJC, may also be setting up for a nice long-side swing trade (thanks for bringing that to my attention B.G.) in addition to some other commodities as well.
Stops on WEAT should be dependent on one’s preferred price target(s) although a relatively tight stop, should WEAT breakout soon, could be placed slightly below the recent lows. There’s also a good chance that I may adjust the price targets depending on the chart of $WHEAT (spot wheat prices). Additional profit targets may be added as well.