Wheat Futures—Wheat futures in the December contract was slightly higher this Tuesday afternoon in Chicago up 1 penny at 5.02 a bushel still looking to develop into a bullish trend as prices are right near a 3 week high. If you take a look at the daily chart a possible spike bottom may have occurred on June 26th at the 4.79 level as the grain market in general has come off of its lows as historically speaking wheat prices look cheap in my opinion.
If you take a look at the daily chart the down trendline still remains intact as prices are now trading at their 20 day but still far below their 100 day moving average which stands at the 5.35 level as that’s how bearish prices have become over the last several months.
Wheat topped out on January 22nd right at the $6 area while dropping 20% over the last 6 months, however everything comes to an end and it looks to me that corn and soybeans have established bullish trends so let’s keep a close eye on wheat as I will not take a short position as I think the downside is very limited.
CHART STRUCTURE: SOLID
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