Technically Speaking

Weekly Analysis: Wheat Markets

Source: DTN ProphetX

SRW Wheat (Cash): The DTN National SRW Wheat Index (SR.X, national average cash price) closed at $3.88, up 1 1/2 cents for the week. The secondary (intermediate-term) trend remains up after breaking out if its sideways pattern the previous week. Given the previous range of 29 1/4 cents, the initial upside target is $4.02 1/2. Retracement resistance is at $4.04 3/4, a price that marks 23.6% of the previous downtrend from $6.01 1/4 through the $3.44 low.

SRW Wheat (New-crop Futures): The Chicago July 2017 contract closed at $4.58 1/2, up 3 3/4 cents for the week. The contract is in a secondary (intermediate-term) uptrend after posting a new 4-week high of $4.65 3/4. Initial resistance is at $4.59 1/4, a price that marks the 23.6% retracement level of the previous downtrend from $5.86 1/2 through the recent contract low of $4.20. However, with weekly stochastics bullish and well below the overbought level of 80% the contract could extend its rally to the 33% level of $4.75 1/2.

HRW Wheat (Cash): The DTN National HRW Wheat Index (HW.X, national average cash price) closed at $3.49, down 5 1/2 cents for the week. Despite the lower weekly close the secondary (intermediate-term) trend remains up with next resistance pegged at $4.07. This price is the high weekly close from the week of May 31. However, weekly stochastics are well above the overbought level of 80% and nearing a possible bearish crossover.

HRW Wheat (New-crop Futures): The Kansas City July 2017 contract closed at $4.66 1/2, down 6 1/4 cents for the week. While the contract's secondary (intermediate-term) trend remains up, last week's lower close could be a warning sign. The contract tested resistance at $4.72 1/4, a price that marks the 33% retracement level of the previous downtrend from $5.70 through the low of $4.23 1/2. Weekly stochastics are still bullish below the overbought level of 80%.

HRS Wheat (Cash): The DTN HRS Wheat Index (SW.X, national average cash price) closed at $5.24 1/4, down 12 3/4 cents for the week. The market's secondary (intermediate-term) trend looks to have turned down last week. The lower close by the SW.X led to a bearish crossover by weekly stochastics. If the trend has turned down, initial support is at $5.12 3/4, then $5.03.

HRS Wheat (New-crop Futures): The Minneapolis September 2017 contract closed at $5.58 3/4, down 2 3/4 cents for the week. While indications are the contract remains in a secondary (intermediate-term) uptrend, the contract fell back from a test of resistance near $5.65. This price marks the 50% retracement level of the previous downtrend from $6.09 3/4 through the low of $5.20. Weekly stochastics are bullish below the overbought level of 80%.

To track my thoughts on the markets throughout the day, follow me on Twitter:www.twitter.com\Darin Newsom

Comments

To comment, please Log In or Join our Community .