Markets

Autochartist - Daily Commodities Update: Wheat

Wheat futures dropped sharply and then recovered during Wednesday's session, perhaps marking the end of a major Falling Wedge chart pattern. The nearby wheat futures contract has dropped more than $1.50 per bushel since the pattern began forming, with the last push through the trend line support appearing to find heavy buying for a potential selling climax.

After the brief piercing of support the market closed back into the middle of the wedge, leaving traders to watch for a rally above resistance to negate the bearish downside breakout altogether, This would require a move above $6.70 per bushel, with any continued selling pressure for the rest of this week likely to move the price back towards the swing low from Wednesday's session.

Such a decline would likely project a much lower downside price forecast and paint wheat futures into a long term bear market on the charts. As there is a nearly 60-cent range within the Falling Wedge chart pattern, continued price action while the pattern develops further may allow for more time before establishing positions ahead of a directional breakout.

For further information on this and other Autochartist products, visit our website at www.autochartist.com

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

Commodities

Latest Markets Videos