Pro Farmer Senior Market Analyst Rich Posson says SRW wheat futures are due to post a Level 2 top this or next week. "With USDA reports due tomorrow, the market may be close to a second and final chance for a Level 2 high," he says.
"Prices are within an objective range from $5.71 to $5.99 for the December SRW contract. Open interest declined suggesting short covering," adds Posson. "A close below $5.70 1/4 will likely be a sign of a Level 3 downtrend is underway for this week and perhaps into early next. A weekly close below that level may signal a Level 2 top is in place."
On the December SRW wheat chart below, Posson uses technical indicators such as stochastic, moving averages, trendlines as well as his business-cycle analysis:
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