Wheat Futures (CBT.W) opened Wednesday's session at $7.90 per bu., the high of the day. Wheat closed the session down 1.8% at $7.65'6. This comes after wheat had rallied a 'big' 2.8% after opening at its low. Historically, we can expect a decline on Thursday.
Q: How has CBT.W performed in the past when, during August, it opens at the high of the day to record a decline after it had opened at its low the day before?
A: According to the seven previous occurrences of this event, EventEdge indicates that CBT.W has shown a strong bearish edge that peaks one trading day after the event.
CBT.W declines in 100% of the cases (7 of 7) by an average of 1.7% relative to the close on the event date, providing a target price of $7.52'6.
To view this idea in our EventEdge® analysis tool click here.
Ronish Patel is an analyst with MarketHistory.com.
