{"id":12034,"date":"2022-04-13T05:24:52","date_gmt":"2022-04-13T09:24:52","guid":{"rendered":"https:\/\/morpheustrading.com\/blog\/?p=12034"},"modified":"2022-04-13T05:42:10","modified_gmt":"2022-04-13T09:42:10","slug":"wheat-etf-breakout","status":"publish","type":"post","link":"https:\/\/morpheustrading.com\/blog\/wheat-etf-breakout\/","title":{"rendered":"Wheat ETF Breakout: How to BENEFIT from Surging Food Prices"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"719\" height=\"240\" src=\"https:\/\/new.morpheustrading.com\/blog\/wp-content\/uploads\/2022\/04\/WEAT-719x240.jpeg\" alt=\"$WEAT ETF\" class=\"wp-image-12038\" title=\"\" srcset=\"https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2022\/04\/WEAT-719x240.jpeg 719w, https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2022\/04\/WEAT-110x37.jpeg 110w, https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2022\/04\/WEAT-768x256.jpeg 768w, https:\/\/morpheustrading.com\/blog\/wp-content\/uploads\/2022\/04\/WEAT-1536x512.jpeg 1536w\" sizes=\"auto, (max-width: 719px) 100vw, 719px\" \/><\/figure>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">TABLE OF CONTENTS<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/morpheustrading.com\/blog\/wheat-etf-breakout\/#With_surging_inflation_many_consumers_have_been_feeling_the_pinch_of_rising_food_prices_lately_But_heres_an_excellent_way_to_profit_from_the_situation_through_buying_an_ETF_that_follows_the_price_of_wheat_futures_WEAT\" >With surging inflation, many consumers have been feeling the pinch of rising food prices lately. But here&#8217;s an excellent way to profit from the situation through buying an ETF that follows the price of wheat futures ($WEAT).<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/morpheustrading.com\/blog\/wheat-etf-breakout\/#WEAT_The_Pullback_Buy_Setup\" >$WEAT: The Pullback Buy Setup<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/morpheustrading.com\/blog\/wheat-etf-breakout\/#WEAT_The_Buy_Entry\" >$WEAT: The Buy Entry<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/morpheustrading.com\/blog\/wheat-etf-breakout\/#WEAT_The_Exit_Strategy\" >$WEAT: The Exit Strategy<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"With_surging_inflation_many_consumers_have_been_feeling_the_pinch_of_rising_food_prices_lately_But_heres_an_excellent_way_to_profit_from_the_situation_through_buying_an_ETF_that_follows_the_price_of_wheat_futures_WEAT\"><\/span>With surging inflation, many consumers have been feeling the pinch of rising food prices lately. But here&#8217;s an excellent way to profit from the situation through buying an ETF that follows the price of wheat futures ($WEAT).<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Many stock market sectors have been trending lower for months, making 2022 a challenging year for stock investors.<\/p>\n\n\n\n<p>However, rising consumer inflation has caused many commodity-based stocks and ETFs to buck the trend and cruise steadily higher.<\/p>\n\n\n\n<p><strong>Teucrium Wheat Fund (<a href=\"https:\/\/teucrium.com\/etfs\/weat\" target=\"_blank\" rel=\"noreferrer noopener\">$WEAT<\/a>), a hot ETF that tracks the price of wheat futures,<\/strong> <strong>is one such leader in the commodity sector.<\/strong><\/p>\n\n\n\n<p>$WEAT has already gained +6% since its April 8 buy trigger, and is now poised for further gains in the coming weeks.<\/p>\n\n\n\n<p>Continue reading to discover why we recently alerted <em><a href=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts\" target=\"_blank\" rel=\"noreferrer noopener\">Wagner Daily<\/a><\/em> members to the explosive buy setup in this leading commodity ETF.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"WEAT_The_Pullback_Buy_Setup\"><\/span>$WEAT: The Pullback Buy Setup<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>$WEAT broke out from a three-month long base and exploded higher in early March, confirmed by a massive volume surge as well:<\/p>\n\n\n\n<figure class=\"wp-block-image is-resized size-large\"><a href=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2021\/220412WEAT2.png\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2021\/220412WEAT2.png\" alt=\"$WEAT  daily \" width=\"715\" height=\"480\" title=\"\"><\/a><figcaption><em>Press chart to view full-sized image<\/em><\/figcaption><\/figure>\n\n\n\n<p>$WEAT then pulled back from the highs and entered into a five-week consolidation pattern.<\/p>\n\n\n\n<p>Generally speaking, a strong breakout should hold support of the 20-day exponential moving average on a pullback&#8211;<em>a clear signal that the trend remains strong.<\/em><\/p>\n\n\n\n<p>Two weeks ago, $WEAT briefly dipped below the 20-day EMA, but quickly recovered back above that level a few days later.<\/p>\n\n\n\n<p>After the price of $WEAT snapped back above the 20-day EMA, we began looking for a potential pullback buy entry in our <a href=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts\" target=\"_blank\" rel=\"noopener\">nightly swing trading report<\/a>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"WEAT_The_Buy_Entry\"><\/span>$WEAT: The Buy Entry<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The daily chart below shows the price action that led to an ideal, low-risk buy setup in $WEAT:<\/p>\n\n\n\n<figure class=\"wp-block-image is-resized\"><a href=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2021\/220412WEAT.png\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2021\/220412WEAT.png\" alt=\"$WEAT  daily \" width=\"715\" height=\"480\" title=\"\"><\/a><figcaption><em>Press chart to view full-sized image<\/em><\/figcaption><\/figure>\n\n\n\n<p>At point &#8220;A,&#8221; the price of $WEAT broke out above the downtrend line from the pullback high.<\/p>\n\n\n\n<p>The price also reclaimed support of the 8 and 20-day exponential moving averages.<\/p>\n\n\n\n<p><strong>That bullish gap above resistance of the downtrend line and moving averages triggered a buy alert <\/strong>and put the setup on our radar for an ideal buy entry point.<\/p>\n\n\n\n<p>Thereafter, the price action tightened up and formed <a href=\"https:\/\/www.investopedia.com\/terms\/i\/inside_day.asp#:~:text=What%20Is%20an%20Inside%20Day,is%20higher%20than%20the%20first.\" target=\"_blank\" rel=\"noreferrer noopener\">inside days<\/a> over the next two sessions.<\/p>\n\n\n\n<p>Narrow-ranged days near key moving averages often create ideal buy points, especially when there are multiple days in a row.<\/p>\n\n\n\n<p>As such, we alerted <em><a href=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Wagner Daily<\/strong><\/a><\/em> members of a potential, low-risk buy point in $WEAT on a rally above the April 7 high (point &#8220;B&#8221;).<\/p>\n\n\n\n<p>The buy trigger came the next day, as the price of $WEAT rallied above the April 7 high on increasing volume.<\/p>\n\n\n\n<p>On April 11, our buy entry was confirmed by a second day of buying on another nice pick-up in volume.<\/p>\n\n\n\n<p>If you are not a member and missed the original buy signal, then <strong>a quick pullback to the 8-day moving average could also provide a relatively low-risk buy entry point<\/strong> in $WEAT.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"WEAT_The_Exit_Strategy\"><\/span>$WEAT: The Exit Strategy<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>With $WEAT now breaking out above the high of its five-week consolidation pattern, traders may consider selling 50% position size into strength on a test of the early March high (around $12.75).<\/p>\n\n\n\n<p><strong>Based on our buy trigger above the April 7 high, that would be a +22% gain<\/strong>&#8211;not bad for a commodity-based swing trade.<\/p>\n\n\n\n<p>If the price action remains bullish, we would then hold the remaining half position to maximize gains in anticipation of a breakout to new highs.<\/p>\n\n\n\n<p>Of course, it&#8217;s crucial to trail a protective stop higher along the way&#8211;simply to secure gains in case of a sharp pullback.<\/p>\n\n\n\n<p>Rising food prices may be challenging right now, but selectively trading commodity stocks and ETFs that are also rising is an excellent way to ease the burden&#8211;and maybe even come out on top!<\/p>\n\n\n\n<p><em><strong><a href=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts\" target=\"_blank\" rel=\"noreferrer noopener\">Become a member now<\/a> <\/strong>to be alerted to our exact entry, stop, and target price of the next explosive Wagner Daily stock pick!<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>With surging inflation, many consumers have been feeling the pinch of rising food prices lately. <\/p>\n<p>But here&#8217;s an excellent way to profit from the situation through buying an ETF that follows the price of wheat futures.<\/p>\n","protected":false},"author":1,"featured_media":12038,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[5],"tags":[],"class_list":["post-12034","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock-picks-analysis"],"_links":{"self":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/12034","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/comments?post=12034"}],"version-history":[{"count":5,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/12034\/revisions"}],"predecessor-version":[{"id":12046,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/12034\/revisions\/12046"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/media\/12038"}],"wp:attachment":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/media?parent=12034"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/categories?post=12034"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/tags?post=12034"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}