This week’s trading has yet to conclude and I find myself eager to review wheat, corn and soybean futures a day in advance as I think they are extremely oversold and due for an upward move in the near-term future, despite their bearish primary (long-term) trend trading patterns. Below are just a few of my technical analysis commentary notes based upon today’s observations of their weekly chart patterns.
Wheat (Sept-2014): The existing level of support that wheat is experiencing can be traced back to 2010 peak-resistance levels. Even though the longer-term trend remains bearish for wheat, we could very well see a full (61.8%) Fibonacci retracement upward from the July-August lows in 2014 to the May-2014 high. (Hat-tip to President Vladimir Putin and Mother Russia)
Corn (Sept-2014): While it is premature to call for a bullish reversal on corn, it appears to be finding support over the last three weeks at the June-2010 low. A bullish Fibonacci retracement from this level to the April-May 2014 highs could be as much as 38.2% of this trading range. To give serious consideration for such a move, it would be preferable to see at least a new 3 or 4 week high.
Soybeans (Nov-2014): Soybeans have been building support for the last 3 weeks at the December-2009 highs and could very likely attempt to test resistance at the July-2013 lows if a rally were to ensue.