Looking To Follow Through To The Upside.
WHEAT (Futures): While Wheat closed higher the past week, its counterpart Corn is holding up better as it shows more strength. In that case, the commodity has some catch up to do in the nearer term. If a follow through to the upside seen in the coming week, Wheat could push towards its Jan 26’09 high/week 200 ema at 599/611 with a break and hold above there exposing the 646 level, its swing high printed on Jan 07’09.This level is very significant as a break of there will confirm a potential sloppy double bottom pattern and clear the way for a run at the 686.25 level, its Nov 16’08 low.However,below the 498.50 level will have to be printed to turn attention to the 471 level, its Dec 05’09 high with a clearance of there putting pressure on the downside and resuming its overall longer term weakness towards its April’07 low at 440.All in all, having stopped its recent declines, the commodity is likely to put more pressure on the upside.
Weekly Chart: WHEAT
This is an excerpt from FXT Commodity Strategist Plus, a 5-commodity (Gold, Silver,Crude Oil,Wheat & Corn)model analysis. Take A One Week Free Trial atwww.fxtechstrategy.com
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