Near Term (Basis July):  Bearish

The July wheat failed to generate the second session of corrective bounce based on Tuesday’s minor reversal pattern to the upside. Instead we got a break to a new low and then a surge lower as chart selling from the chart pattern traders, trend followers, and momentum followers all added with straight sell-stops under $4.32 ¾ and then under $4.29 ½ to provide a solid reason to confirm the bearish chart read in the making again after a three-wave correction higher took place. Unlike the corn chart, July wheat has enabled a fifth-wave lower to be created and this calls into question just how much more on the downside is needed before the contrarians step in and try their hand again. 

Long Term: Bearish

Our long-term technical outlook is bearish. Major resistance is at $4.64, while support is $3.92 ¾ and then $3.85.2017-04-20 16_58_59-042017_SF_Daily_Commentary_Wheat [Read-Only] - Microsoft Word2017-04-20 16_58_53-042017_SF_Daily_Commentary_Wheat [Read-Only] - Microsoft Word

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