Bears Keep Wheat Below 1000
Today in the grain markets, the March Wheat contract (WH8) made an attempt to get over the 1000 mark but couldn’t quite make it, hitting a high on the day of 993. With that high established early, the bears took over and never looked back. Although it was a bullish day overall in the markets, Wheat could not follow suit.
On the chart, we see that this is the third time in the last month and a half that prices have flirted with the 1000 mark, only to retreat. Although Wheat managed to get to 993, 1000 seems to be a scary number for the bulls. They have had three chances to bring the price higher, but haven’t been able to pull it off. The next level of support is around the 900 level based on trading activity earlier this week.
Also, the stochastic indicator is about in the middle, indicating that there are no overbought or oversold conditions based on that indicator. With neither bulls nor bears taking a side, it makes it hard to get a solid decision.
The big news tomorrow is of course the Fed announcement. It will be a widely watched event to be sure.
Mike Tosaw, Director of Education
