Higher highs and higher lows have formed in the weekly chart for Wheat , signalling recovery from the long term downtrend.
1. increasing histogram - Check;
2a. overbought levels - Check; and
2b. increasing levels - Check;
3. Rebound from immediate support *
* note the blue icons indicate support / resistance levels. If this strong support is broken down, prices might continue downwards, bearing in mind the long term downtrend. Therefore, SL is to be set here (or slightly below).
Stop loss: green line *
Expected profit: Nearing the resistance levels (see red icon) which coincides with a fibb level (0.786)
Expected duration: ~ 4 weeks (analysis is only done for intermediate term trade, although term potential is foreseeable)
SL : Enter: TP
6.70 (risky) : 7.10 : 7.90 (conservative)
0.80/0.4 - Reward to risk at 2