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 $3.92, up 3 cents for the week. Cash SRW wheat remains in a secondary (intermediate-term) uptrend on its weekly close-only chart. Initial resistance is at the previous high weekly close of $3.99 (week of January 2), then $4.04. This price marks the 23.6% retracement level of the previous downtrend from $5.02 1/4 through the low of $3.44.

SRW Wheat (New-crop Futures): The Chicago July 2018 contract closed at $4.48 3/4, up 2 1/4 cents for the week. July Chicago wheat remains in a secondary (intermediate-term) uptrend with initial resistance at the 4-week high of $4.62. A move beyond this would confirm Wave 3 of a 5-wave uptrend with the next targeted price $4.77 3/4. This marks the 23.6% retracement level of the previous downtrend from $6.09 1/2 through the contract low of $4.37. Support is at the contract low.

HRW Wheat (Cash): The DTN National HRW Wheat Index (HW.X, national average cash price) closed at $3.84 1/4, up 3 3/4 cents for the week. Cash HRW wheat remains in a secondary (intermediate-term) uptrend on its weekly close-only chart. Next resistance is at $3.90 3/4, a price that marks the 38.2% retracement level of the previous secondary downtrend from $4.73 3/4 through the low of $3.39 1/4. The 50% retracement level is up at $4.06 1/2. Weekly stochastics remain near the overbought level of 80%.

HRW Wheat (New-crop Futures): The Kansas City July 2018 contract closed at $4.58, up 2 3/4 cents for the week. July Kansas City wheat remains in a secondary (intermediate-term) uptrend with initial resistance at its 4-week high of $4.70 3/4. A move beyond that price confirms Wave 3 of a 5-wave uptrend with next resistance at $4.83 1/2. This price marks the 23.6% retracement level of the previous downtrend from $6.23 through the recent contract low of $4.40 1/4. Weekly stochastics are bullish above the oversold level of 20%.

HRS Wheat (Cash): The DTN HRS Wheat Index (SW.X, national average cash price) closed at $5.89 1/2, down 2 3/4 cents for the week. The SW.X is in a secondary (intermediate-term) sideways trend. Initial resistance is at the recent high weekly close of $6.05 1/4 (week of January 2) with support the previous low weekly close of $5.82 1/4 (week of December 4).

HRS Wheat (New-Crop Futures): The Minneapolis September 2018 contract closed at $6.21 3/4, up 1/4 cent for the week. New-crop Minneapolis spring wheat continues to consolidate within in a secondary (intermediate-term) downtrend. The September contract remains above support at $6.13 1/2 while weekly stochastics have moved below the oversold level of 20%.

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