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 $3.81 3/4, down 6 cents for the week. Though the secondary (intermediate-term) trend remains up, weekly stochastics have climbed above the overbought level of 80% setting the stage for a possible bearish crossover. If so, the uptrend could be nearing its end.

SRW Wheat (New-crop Futures): The Chicago July 2017 contract closed at $4.49 1/4, down 9 1/4 cents for the week. While the secondary (intermediate-term) trend remains up, the minor (short-term) trend is down. Minor support is pegged at $4.42 3/4 and $4.35 1/4, prices that mark the 50% and 67% retracement levels of the previous short-term uptrend from $4.20 through the high of $4.65 3/4.

HRW Wheat (Cash): The DTN National HRW Wheat Index (HW.X, national average cash price) closed at $3.41, down 7 3/4 cents for the week. The HW.X saw its secondary (intermediate-term) trend turn down with last week's lower close leading to a bearish crossover by stochastics above the overbought level of 80%. Initial support is at old resistance at $3.27 1/4.

HRW Wheat (New-crop Futures): The Kansas City July 2017 contract closed at $4.58 1/2, down 8 cents for the week. Weekly stochastics continue to indicate the contract is in a secondary (intermediate-term) uptrend. However, the minor (short-term) trend has turned down with support pegged at $4.52 1/4 then $4.42 1/2. A recovery from the expected sell-off could lead to a retest of secondary resistance between $4.72 1/4 and $4.79 1/2.

HRS Wheat (Cash): The DTN HRS Wheat Index (SW.X, national average cash price) closed at $5.17 3/4, down 6 1/4 cents for the week. The market's secondary (intermediate-term) trend remains down, building on the previous week's bearish crossover by weekly stochastics above the overbought level of 80%. Initial support is pegged at $5.12 3/4, then $5.21.

HRS Wheat (New-crop Futures): The Minneapolis September 2017 contract closed at $5.55, down 2 1/2 cents for the week. While indications are the contract remains in a secondary (intermediate-term) uptrend, the contract continues to fall 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%.

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