Why Wheat Might Be Tasty

Various factors from fundamentals to technicals indicate that wheat might be a good candidate for a long position. First, the latter part of October had enough momentum to punch through the resistance indicated by the Ichimoku cloud. Next, we see consecutively higher lows indicated by the trend lines. Finally, we note that there is a relative vacuum area from above. The fact that the price is consolidating around this level may indicate that wheat will break out soon. The bullish ABCD pattern further confirms this assertion. The MACD and RSI indicate that this is an optimal time to buy.

Also note that the fundamentals suggest that the demand for wheat may rise due to a decease in Saudi production. Believe it or not, Saudi Arabia is a big producer of wheat for the middle east.