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 $4.28, down 6 3/4 cents for the week. Cash SRW wheat remains in a secondary (intermediate-term) downtrend on its weekly close-only chart with next support at $4.22 1/4. This price marks the 50% retracement level of the previous uptrend from $3.81 1/4 through the recent high of $4.63 1/2. After posting a bearish crossover above the overbought level of 80%, weekly stochastics are bearish and moving lower.

SRW Wheat (New-crop Futures): The Chicago July 2018 contract closed at $4.76 1/2, down 8 1/2 cents for the week. Not only did the contract leave a bearish price gap down on its weekly chart last week, but also posted a new 4-week low of $4.62 1/4 indicating the secondary (intermediate-term) trend has turned down. Last week's low of $4.62 1/4 was a test of support at $4.59 1/4, a price that marks the 76.4% retracement level of the previous uptrend from $4.37 through the high of $5.31 3/4.

HRW Wheat (Cash): The DTN National HRW Wheat Index (HW.X, national average cash price) closed at $4.37 1/4, down 19 1/4 cents for the week. Cash HRW remains in a secondary (intermediate-term) downtrend. Next support is at $4.33, a price that marks the 38.2% retracement level of the previous uptrend from $3.47 1/2 through the high near $4.86. The 50% retracement level is down at $4.16 3/4.

HRW Wheat (New-crop Futures): The Kansas City July 2018 contract closed at $4.98 1/4, down 18 1/4 cents for the week. July Kansas City wheat remains in a secondary (intermediate-term) downtrend. Last week saw the contract test support at $4.69 3/4, a price that marks the 76.4% retracement level of the previous uptrend from $4.40 1/4 through the high of $5.65. Weekly stochastics remains bearish, below the overbought level of 80%.

HRS Wheat (Cash): The DTN HRS Wheat Index (SW.X, national average cash price) closed at $5.84 1/2, down 7 1/2 cents for the week. The SW.X remains in a secondary (intermediate-term) sideways trend. Initial resistance is at the recent high weekly close of $5.98 3/4 with support the previous low weekly close of $5.85 1/2. Weekly stochastics are neutral.

HRS Wheat (New-Crop Futures): The Minneapolis September 2018 contract closed at $6.15, down 10 1/4 cents for the week. The contract looks to be in a secondary (intermediate-term) sideways-to-down trend. Last week saw the contract move below previous support at $6.16 1/4. Weekly stochastics remain neutral above the oversold level of 20%.

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