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December soft red winter wheat futures signal more downside
The view cites bearish technical momentum, with a break below $6.65 for December SRW futures and a $6.00 downside objective.
Barchart technical analyst Jim Wyckoff said December soft red winter wheat futures (ZWZ26) are setting up for additional price weakness, pointing to a developing bearish broadening pattern on the daily chart.
Wyckoff attributed the turn in part to bearish momentum from MACD, where the blue MACD line crossed below the red trigger line and both lines are trending lower, and he also pointed to hedge-selling pressure from commercials amid the U.S. wheat harvest.
He added that a recent rally appeared to reflect expectations for reduced wheat supplies from the Black Sea region, even as that backdrop has not supported prices.
On the trading levels, he flagged $6.65 as chart support, with a move below that level framed as a potential selling trigger and a downside target near $6.00, while placing resistance around $6.90.
Latest closeWheat $644.00 ▲0.9%