Bears Eat Their Wheaties
Wheat gave back about half of what it gained yesterday, with the December contract closing down 14.5 at 814 on the heels of a 28.5 point gain yesterday. Wheat continues a downtrend that started at the beginning of this month when the contract peaked at 961. Following the moving averages, both the 15- and 25-day have yet to catch up to the current downward pricing action.
Although slow stochastic indicators are still above the 20 mark – a number below 20 indicates a potential reversal – volume has remained stable since the month began, and we are still above psychological support at 800. Buyers came in on October 25 and 26 as Wheat dipped below that mark, but there is no charted support at that number within the last year. If 800 does not turn out to be the magic number, there is no support until around the 740 mark established in late August.
Also worth mentioning is that Crude Oil once again fell below the 90 mark today – an almost 4% decline on the session. The weekly EIA report is due tomorrow at 10:30 AM Eastern time. The Fed is also scheduled to give a policy statement on interest rates, which always makes life interesting in the markets.
Director of Education Mike Tosaw
