March soft red winter wheat futures at the Chicago Board of Trade have seen serious near-term technical damage inflicted following a sharp price decline on Tuesday. Now, a down-trend line on the daily bar chart can be drawn from the November, December and January highs. The wheat market bears have gained fresh downside technical momentum this week, and would gain more by producing a close below strong chart support at the December low of $5.14 1/4. Below that level lies major psychological support at $5.00 a bushel. Above these price levels is located technical support at Thursday’s low of $5.27 1/4, at $5.25 and then at this week’s low of $5.19 1/4.
For the wheat market bulls to gain fresh upside technical momentum to suggest a fresh uptrend can be sustained, they would have to push and close March futures prices above strong chart resistance at this week’s high of $5.75 a bushel. Below that level does lie technical resistance at Thursday’s high of $5.37 1/4, at $5.45 1/4, at $5.50 and then at $5.60. Stay tuned! Jim Wyckoff