Wheat Technicals: Wheat futures came within a stone's throw of 4-star support overnight, we've had that labeled as 1027 1/4-1034 1/4, the low was 1036 1/2. If you're Bullish (we aren't) that is a good spot to consider buying as the risk is fairly well defined. A break and close below that pocket could open the door for a break back below $10.00 and below, with the next significant support coming in closer to 975.
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What is your timeframe and case for your bearish wheat call? For me; given the significant macro tailwinds for wheat, the volume associated with the price action showing sellers running out of steam, and the rsi on the daily at it's bounce level, I am on the other side of your trade. That being said, I love a good counter argument.
OliverSloup_BlueLine
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@SloppySeconds, We did test and hold support this morning, which could propel us back to the top end of the range near $11. On the fundamental side of things, I don't think the world is running out of wheat it's more of a logistics problem. So that would be bullish, but everyone already knows the issues overseas and the market has been pricing that in for the last 4-months. That leaves significant risk to the downside if something were to get ironed out. On a shorter time frame, I think there are plenty of opportunities on both sides of the market, but I wouldn't be holding my breath for new highs.