December soft red winter wheat (ZWZ26) futures present a buying opportunity on more price strength. See on the daily bar chart for December soft red winter wheat futures that prices are in a fledgling uptrend and have just hit a two-week high. See, too, at the bottom of the chart that the moving average convergence divergence (MACD) indicator is nearing a bullish line crossover signal, as the blue MACD line is trending up and poised to move above the red trigger line very soon.
Bulls have the overall near-term technical advantage. Why Is This Monday Morning Different in the Commodity Complex? Corn and Soybean Prices Have a Major Catalyst This Week as the Pro Farmer Crop Tour Kicks Off Markets move fast.
Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. Fundamentally, the wheat supplies coming out of the major global grain-producing region around the Black Sea have been significantly reduced by the Russia-Ukraine war. Other global grain-producing regions have experienced adverse weather for growing crops.
A move in December SRW wheat above chart resistance at the overnight high of $6.95 would become a buying opportunity. The upside price objective would be $8.00 or above. Technical support, for which to place a protective sell stop just below, is located at $6.50.
IMPORTANT NOTE: I am not a futures broker and do not manage any trading accounts other than my own personal account. It is my goal to point out to you potential trading opportunities. However, it is up to you to: (1) decide when and if you want to initiate any trades and (2) determine the size of any trades you may initiate.
Any trades I discuss are hypothetical in nature. Here is what the Commodity Futures Trading Commission (CFTC) has said about futures trading (and I agree 100%): Trading commodity futures and options is not for everyone. IT IS A VOLATILE, COMPLEX AND RISKY BUSINESS.
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