WHEAT Technical Analysis | WHEAT Trading: 2022-05-16 | IFCM
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WHEAT Technical Analysis - WHEAT Trading: 2022-05-16

Wheat Technical Analysis Summary

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Strong SellSellNeutralBuyStrong Buy

Above 1190

Buy Stop

Below 1020

Stop Loss

Mary Wild
Senior Analytical Expert
Articles 2058
IndicatorSignal
RSI Neutral
MACD Neutral
MA(200) Neutral
Fractals Buy
Parabolic SAR Buy
Bollinger Bands Buy

Wheat Chart Analysis

Wheat Chart Analysis

Wheat Technical Analysis

On the daily timeframe, WHEAT: D1 went up from the triangle. A number of technical analysis indicators formed signals for further growth. We do not rule out a bullish movement if WHEAT: D1 rises above its latest high: 1190. This level can be used as an entry point. The initial risk limit is possible below the Parabolic signal and the lower Bollinger line: 1020. After opening a pending order, we move the stop following the Bollinger and Parabolic signals to the next fractal low. Thus, we change the potential profit/loss ratio in our favor. The most cautious traders after making a trade can switch to a four-hour chart and set a stop loss, moving it in the direction of movement. If the price overcomes the stop level (1020) without activating the order (1190), it is recommended to delete the order: there are internal changes in the market that were not taken into account.

Fundamental Analysis of Commodities - Wheat

USDA reduced its forecast for the global wheat crop for the 2022/2023 season. Will the WHEAT quotes continue to rise?

USDA cut the forecast for the global wheat harvest in the 2022/2023 agricultural season by 4.5 million tons compared to the 2021/2022 season. Now it should be at least 774.8 million tons. World reserves will decrease more significantly - by 12.7 million tons. This will be supported by strong global demand, estimated at 787.5 million tones. The maximum decrease in the harvest is predicted in Ukraine, by more than a third or by 11.5 million tons - up to 21.5 million tons. Wheat production in Australia may decrease by 6.3 million tons and amount to 30 million tons. An additional positive for the quotes may be the risks of new anti-Russian sanctions. According to the USDA forecast, in the 2022/2023 season, Russia will retain the 1st place in world wheat exports and supply 39 million tons to other countries. This is 18.2% more than in the 2021/2022 season. It is obvious that the reduction of this volume for any reason can increase grain prices on world markets. In general, it can be noted that for the necessary balance of supply and demand, the USDA expects an increase in world wheat exports in the 2022/2023 season by 3.7 million tons compared to the previous season, contrary to the projected decrease in the global crop.

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Note:
This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.

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