December soft red winter wheat futures at the Chicago Board of Trade on Thursday morning hit a fresh nine-week high of $9.76 1/4 a bushel. The market is in a four-week-old uptrend from the May low of $7.68 and the bulls have recently gained fresh upside near-term technical momentum.
Price action Thursday also pushed December wheat above Fibonacci resistance at $9.65, which is a 38.2% retracement level of the price move from the contract high of $12.84 1/4 (scored in March) to the May 29 low of $7.68. The key 50% retracement level of that same price move comes in at $10.26 1/2.
The next upside price objective for the Chicago wheat bulls is to push and close December futures prices above psychological resistance at $10.00 a bushel. A close above that major technical price level and the 50% Fibonacci retracement level would be significantly bullish to open up strong upside price potential.
Near-term technical support for December wheat is located at $9.50, at Thursday's low of $9.40 1/2 and then at $9.25. It would take a close below strong technical support at this week's low of $8.83 1/2 to deflate the bulls and provide the bears with some fresh downside near-term technical momentum.