Markets

Autochartist - Daily Commodities Update: Wheat

Tuesday's bullish action in the grain markets set up a possible breakout from an emerging Rising Wedge chart pattern, illustrated here on an hourly time interval. After choppy mid-day trade, the nearby wheat futures surged to close on the highs just slightly above resistance established by the wedge.

Follow-through buying in Wednesday's session would initiate a topside breakout from the wedge with a move back above $7.60 per bushel. Overall strength in the grains combined with the resilience of the wheat futures amidst the broader market turmoil adds potential for this rally into a higher price level to materialize.

This pattern has been developing for a considerable time period over a large price range, which may portend a substantial move upwards if the pattern completes. A move back into the channel below $7.50 per bushel would shift the outlook to neutral, with a move back down to $7.05 or lower required to trigger a downside breakout from the wedge.

While the grain markets have begun to detach from outside influence of stock and currency swings, they remain susceptible to a return of severe selling in the major markets.

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