Wheat prices like corn and beans have pulled back Friday and today.
Wheat is starting to approach chart support just below where we closed today.
Wheat is in a very similar situation from a chart perspective, the short term is turned downward, technical has turned downward, and we need to find support quickly.
Wheat prices also in an uptrend off the lows posted in August at 8.08.
Wheat has turned lower over the last couple of trading sessions which was enough to turn the technical indicator lower as well.
Prices now sitting in an area where we have our moving averages coming into play and an uptrend line in play.
We still look to be in a U shape bottom which would indicate prices will move towards the $10 level.
Wheat continues to show evidence of a U shape bottom and we still believe prices can work towards the $10 level as we move towards the fall months.
It doesn’t have to happen all at once and this market could pull back toward chart support in the 8.85-9.00 range.
If corn and soybeans have a harvest pullback it will be difficult for wheat to rally on its own.
Wheat prices look pretty good as we made a new high for the move up to 9.34.
The significance of this is that last weeks high at 9.21 were equal to the early august highs and now we posted a new high.
We did pull back and closed at 9.01, so we continue to hint at signs of a U-shaped bottom.
Wheat prices also had a disappointing day posting a new high for the day up to 9.05 and turned around closing sharply lower.
That’s a key reversal on the chart but prices came down to where the 10-, 20-, and 40-day moving averages come into play.
Wheat prices look very good, this market has rallied 87 cents since last Thursday’s low.
We are now challenging the highs from August which places 9.21 at the next target. That’s almost 40 cents above where we closed today.
Following the rally, the last 3 days the wheat chart looks good and technical indicators look good.
Wheat prices had two very disappointing days last week setting a new low, but they bounced back nicely on Friday closing sharply higher with additional gains today.
This market still looks as though it’s trying to establish a U shape bottom and we would not be surprised to see prices attacking the $10 level as we get into late summer and early Fall.
Wheat prices continue to show signs of bottoming action, but they have not been able to breakout.
We do expect the wheat market will form a U shape bottom, right now prices are bouncing above and below that line, but wheat has the potential to start working higher over time.
We believe that $10 is a reasonable target for the wheat market.