Wheat was in bear cycle for the past 5 years and then it consolidated to rectangle pattern after it bottomed last year. As mentioned in my previous post "
Wheat Seasonal Play Again", wheat has broken the 5 years downtrend line during the consolidation period and it will enter into long-term bull cycle again once it breaks from the resistance.
Finally wheat breakout as shown in the chart above. This is real breakout and fundamentally supported by seasonal bullish month from July to October.
How to trade Wheat?
- Teucrium Wheat Fund (WEAT)
- buy and hold like a stock.
- Wheat Futures (/ZW)
- for bigger account can buy with margin ~ $1320
- E-Mini Wheat Futures (/XW)
- for smaller account can buy with margin ~$264
- Wheat Futures Option
- buy call with longer period contract
- sell put for higher winning probability