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 $4.12 1/4, up 20 1/2 cents for the week. The secondary (intermediate-term) trend remains up with the SR.X above the initial target of $4.04 3/4. This price marks the 23.6% retracement level of the previous downtrend from $6.01 1/4 through the low of $3.44 (weekly close only). However, weekly stochastics are already above the overbought level of 80%, possibly limiting continued buying interest.

SRW Wheat (New-crop Futures): The Chicago July 2017 contract closed at $4.74 3/4, up 18 1/2 cents for the week. The secondary (intermediate-term) trend remains up, with next resistance pegged at $4.75 1/2. This price marks the 33% retracement level of the previous downtrend from $5.86 1/2 through the low of $4.20. Weekly stochastics remain bullish, indicating the contract should continue to find buying interest.

HRW Wheat (Cash): The DTN National HRW Wheat Index (HW.X, national average cash price) closed at $3.69 1/4, up 21 1/4 cents for the week. Cash HRW wheat looks to have resumed its secondary (intermediate-term) uptrend with recent downtrend signals trumped by the market's major (long-term) uptrend. Initial major resistance is pegged at $4.23 1/4, a price that marks the 23.6% retracement level of the previous downtrend from $8.88 1/2 (July 2012) through the low of $2.79 3/4 (August 2016).

HRW Wheat (New-crop Futures): The Kansas City July 2017 contract closed at $4.84 1/2, up 18 3/4 cents for the week. The secondary (intermediate-term) trend remains up, with next resistance pegged at $4.96 3/4. This price marks the 50% retracement level of the previous downtrend from $5.70 through the low of $4.23 1/2. The 67% retracement level is up at $5.21 1/4. Weekly stochastics are bullish but nearing the overbought level of 80%.

HRS Wheat (Cash): The DTN HRS Wheat Index (SW.X, national average cash price) closed at $5.31 3/4, up 13 1/4 cents for the week. The secondary (intermediate-term) trend is sideways between the recent high weekly close of $5.36 3/4 and recent low weekly close of $5.17 3/4. Weekly stochastics remain above the overbought level of 80%, possibly limiting new buying enthusiasm.

HRS Wheat (New-crop Futures): The Minneapolis September 2017 contract closed at $5.72 1/4 up 10 cents for the week. The contract remains in a secondary (intermediate-term) uptrend, with next resistance at $5.75 1/2. This price marks the 61.8% retracement level of the previous downtrend from $6.09 3/4 through the low of $5.20. The 76.4% retracement level is up at $5.88 1/2. Weekly stochastics are bullish, but above the overbought level of 80%.

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