Focus: September Wheat on the rebound
After three consecutive down weeks in wheat, Friday ended up on a weekly key reversal bar. Wheat closed at $8.11 per bushel on Friday, 23.25¢ off Friday’s lows and up 7¢ from the prior week. This is a technical bounce in an oversold market, and higher prices are likely to continue into the new week. The 30-minute chart of wheat shows that price broke through resistance (upper trendline) and then held above it on a test of support (yellow arrow). Subsequently, price made a new high, and the +DMI (blue arrow) also make a new high, signifying new bullish momentum. The ADX (yellow line) is rising, and a move above the 25 level (yellow dashed line) would indicate trend strength and the likely beginning of a new uptrend on this timeframe. Upside targets for September wheat are $8.40 and $8.95.
Chart Courtesy of TradeStation
Dr. Charles B. Schaap transitioned from health care to wealth care in the nineties. He is the author of ADXcellence —Power Trend Strategies and Invest with Success—Big Profits for Small Investors. Dr. Schaap is a commodity futures strategist and recognized authority in technical analysis of the financial markets. His website is www.adxcellence.com.
