October 29, 2009
Technical Special: Chicago wheat bears back in command
December soft red winter wheat futures at the Chicago Board of Trade have backed way down from last Friday's (Oct 23) two-and-a-half-month high of US$5.74 3/4 a bushel. Since last Friday's high, prices have dropped around 75 cents a bushel.
Serious near-term technical damage has been inflicted the past three trading sessions to suggest that a near-term market top is in place and that prices can now retest the early-October contract low of US$4.39 1/4.
Price action this week in December Chicago wheat did negate a steep three-week-old uptrend from the early-October contract low.
The next downside price objective for the re-powered wheat market bears is to push and close December futures prices below solid technical support at US$4.80.
For the weakened wheat market bulls to regain fresh upside technical momentum, they will have to push and close December futures prices above strong technical resistance at US$5.29.
