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Wheat (ZW) Consolidates Near 2021 High

Wheat (ZW) Consolidates Near 2021 High

Posted November 1, 2021
Darren Chu
Tradable Patterns

Wheat (ZW) is showing a bit of fatigue to start the week, consolidating with a bit more upside before bumping into uptrend resistance (on the 4hr chart).  Significantly, regardless of any healthy profittaking in the next day or so, ZW closed October at the month high, and appears to be gravitating towards the 2021 high.  A fresh 2021 high will likely coincide with a test of upchannel resistance (on the weekly chart) and the psychologically key 800 whole figure level.  Congratulations to Premium Members alerted Aug 21, 2020 to ZW’s major bottoming effort and who benefited.  The weekly, daily and 4hr RSI, Stochastics and MACD are bottomish, rallying or consolidating recent gains.  I am looking to go long in the green zone (of the daily chart), targeting the red zone for Friday.  The amber/yellow zone is where I might place a stop if I was a swing trader (although in my personal account with which I seldom hold overnight I sometimes set my stops tighter). 

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