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Wheat (ZW) Consolidating Near 61.8% Fib Retrace of Sep16-Mar22 Bull Market

Wheat (ZW) Consolidating Near 61.8% Fib Retrace of Sep16-Mar22 Bull Market

Posted December 19, 2022
Darren Chu
Tradable Patterns

Wheat (ZW) Consolidating Near 61.8% Fib Retrace of Sep16-Mar22 Bull Market

Wheat (ZW) has been consolidating for 2 weeks near the 61.8% Fib retrace of the September 2016 to March 2022 bull market, but remains moderately vulnerable to sliding back to the 2022 low before year end.  ZW will need a weekly close above the psychologically key 800 whole figure level and to break above descending wedge resistance (on the weekly chart) to neutralize the still somewhat bearish longer term momentum.  Keep an eye on the escalation in the Ukraine-Russia conflict.  Congratulations to Premium Members alerted Feb 14, 2022 to the looming resumption in the major uptrend and who benefited, along with those who took advantage of  the Aug 21, 2020 highlighting of ZW’s major bottoming effort.  The weekly and daily RSI, Stochastics and MACD are bottomish.  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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Source: Interactive Brokers TWS

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