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 $4.19, up 21 3/4 cents for the week. The SR.X looks to have reestablished the previous secondary (intermediate-term) uptrend its weekly close-only chart. The SR.X moved above its previous high of $4.12 1/4, setting the stage for a test of next resistance at $4.29 3/4. This price marks the 33% retracement level of the previous downtrend from $6.01 1/4 through the low of $3.44.

SRW Wheat (New-crop Futures): The Chicago July 2017 contract closed at $4.45 3/4, up 16 1/4 cents for the week. It could be argued that July Chicago moved to a secondary (intermediate-term) uptrend as it posted a new 4-week high of $4.55 3/4. The next upside target is $4.72 3/4, a price that marks the 33% retracement level of the previous downtrend from $5.86 1/2 through the low of $4.16.

HRW Wheat (Cash): The DTN National HRW Wheat Index (HW.X, national average cash price) closed at $3.79 1/4 up 22 cents for the week. The cash HRW market looks to have reestablished a secondary (intermediate-term) uptrend with its close above the previous high of $3.75. If so the HW.X would now be in Wave 5 of a normal 5-wave move. Weekly stochastics are nearing the overbought level of 80%, possibly limiting upside potential.

HRW Wheat (New-crop Futures): The Kansas City July 2017 contract closed at $4.51 1/2 up 18 1/4 cents for the week. The secondary (intermediate-term) trend of July KC futures looks to have turned up with last week's move to a new 4-week high of $4.60. If so next resistance is pegged at $4.64, a price that marks the 33% retracement level of the previous downtrend from $5.70 through the low of $4.11 1/4. The 50% retracement level is all the way up at $4.90 3/4.

HRS Wheat (Cash): The DTN HRS Wheat Index (SW.X, national average cash price) closed at $5.62 3/4, up 20 1/2 cents for the week. The market extended its secondary (intermediate-term) uptrend last week, closing at the weekly high. Stochastics remain bullish, though above the overbought level of 80%. Major (long-term) resistance is pegged at $5.96 3/4 on the market's monthly chart.

HRS Wheat (New-crop Futures): The Minneapolis September 2017 contract closed at $6.11, up 24 cents for the week. The secondary (intermediate-term) trend remains up. Next major (long-term) resistance on the market's monthly chart is at $6.31 1/4, a price that marks the 23.6% retracement level of the previous downtrend from $11.20 through the lwo of $4.80 1/4.

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