In the Spirit of the Season, Wheat Gives Back
After a pretty big day for Wheat bulls yesterday, the bears made a short-term statement today, dropping the March contract (WH8) by nearly 2%. The low of the day held at the 950 level, but the close at 954 put us just below yesterday’s open.
Looking at the chart, we see that the past six months have been good to Wheat bulls, with prices increasing by over 50%. Although we have been in a bit of a channel since the beginning of October, the last few days have lingered above previous resistance in the 950 area. If we continue to the upside, there is no apparent resistance. But the bears were in control today, and the longer that lasts, the better the chance that the channel may continue. Should the bulls take over the trend, the longs will have a very happy New Year indeed.
Mike Tosaw, Director of Education
