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Wheat Slides in Bearish Outside Day -- Technical Analysis

10 Oct 2017 12:00 pm
 

By Kira Brecht
 

DECEMBER CBOT CORN
 

December corn closed little changed and held within recent ranges Monday.

The corn market continues to consolidate in uninspired trade in the lower half of a five-week neutral trading range.

The short-term trend bias is neutral-bearish between major resistance at $3.62 and major support at $3.44 1/4. The 20-day moving average is initial resistance inside that range and a push above that zone would open the door to probing toward the range top.

Bigger picture, it would take a bullish breakout above resistance at $3.62 to turn the near-term trend bullish, and open the door to a new buying wave.

Conversely, a selloff below support at $3.44 1/4 leaves corn vulnerable to a new selling wave.
 

$4.89 1/2 -- the contract high

$3.51 1/4 -- the 10-day moving average

$3.51 1/2 -- the 20-day moving average
   $3.55     -- the 40-day moving average 

$3.82 1/2 -- the 200-day moving average

$3.44 1/4 -- the contract low
 

DECEMBER CBOT WHEAT
 

December Chicago Board of Trade wheat erased minor intraday gains to close lower Monday. The action formed a bearish outside day.

The near-term trend for wheat points down, as the December contract trades below its 10-day and 20-day moving averages.

December wheat is testing support at $4.35 3/4, the Sept. 19 low, and if that cracks, the next bearish wheat objective lies at $4.28 1/4.

On the upside, first resistance lies at $4.45 3/4 and then $4.50 1/2. A recovery above the latter ceiling would be needed to put wheat bulls back in control of the short-term trend.
 
   $5.99     -- the contract high 

$4.47 1/4 -- the 10-day moving average

$4.47 1/4 -- the 20-day moving average
   $4.43     -- the 40-day moving average 
   $4.79     -- the 200-day moving average 

$4.22 1/4 -- the contract low
 

DECEMBER KC WHEAT
 

December Kansas City wheat closed lower Monday, forming a bearish outside day.

The near-term trend is weak.

On the downside, next support and a bearish target lies at $4.26 and then major support lies at $4.20.

On the upside, the 10-day moving average is resistance and recovery above that ceiling would be needed to improve the short-term trend outlook.
 

$6.08 3/4 -- the contract high

$4.42 1/2 -- the 10-day moving average
   $4.44     -- the 20-day moving average 

$4.41 1/4 -- the 40-day moving average

$4.85 3/4 -- the 200-day moving average
   $4.20     -- the contract low 
 

Write to copydesk@dowjones.com
 

(END) Dow Jones Newswires

October 10, 2017 08:00 ET (12:00 GMT)

Copyright (c) 2017 Dow Jones & Company, Inc.
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