Member @pmassaut inquired about /ZW (wheat futures) in the trading room today, pointing out the bullish divergence that has been building on the 60-minute chart along witha nice downtrend line (thanks!).

ZW 60-min March 12th

ZW 60-min March 12th

Wheat has made an impulsive breakout above that 60-minute downtrend line today & while I’d like to study the charts a bit further before deciding if, where & when to add WEAT (wheat ETN) as an official trade idea, I’m considering adding it as both a Swing Trade as well as Long-term/Trend Trade idea. $WHEAT (stockcharts.com ticker for /ZW) has fallen to a 2-decade long-term uptrend line while at rarely seen oversold readings (30 or below). There have only been 4 tags of the 30 level on the weekly chart of wheat in over 20-years, all of which were nearly immediately followed by gains ranging from 36%-52% in relatively short order.

$WHEAT weekly March 12th

$WHEAT weekly March 12th

History doesn’t always repeat but it often rhymes. As such, I wanted to pass WEAT & /ZW along as potential trading opps now, for those interested, and I will follow with a chart of WEAT listing price targets, entry & stop parameters, should I decide to add it as an official trade.

3+