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Wheat Market breaking news – BrokersEDGE – DAW Trading 4-16-18

WHEAT (May)

Last Week’s Close: May wheat futures traded 2 cents lower last week, this after trading in a range of 24 ½ cents. Friday’s Commitment of Traders report showed that funds were buyers of 27,102 futures contracts. This shrinks their net short position down to 44,861 futures. Keep in mind that this data is compiled from April 3rd- April 10th.

Fundamentals: Winter weather over the weekend was not enough to offset the prospect for better weather conditions this week. Rains are working their way into the forecast for areas that need it badly, this has put pressure on futures to start the week. If they do materialize it is possible that we see extended pressure throughout the week. We will continue to keep a close eye on the KC wheat contract as it will likely continue to be the leader.

Technicals: The gap lower on the Sunday night open was not the most encouraging sign for the bull camp, but that could change when we see more volume come in on the floor open. The bulls want to reclaim 467 ¾-472 ¾ on a closing basis. This pocket represents a key Fibonacci retracement level, a previous gap, and the 50-day moving average; we had also defined this as key support to end last week’s trade. A failure to gain back ground could open the door for a run back towards 457 ¾-461 ¾.

Bias: Neutral

Resistance: 472 ¾ **, 483-484 ¾**, 493-495**, 516 ¾-518 ½**

Pivot: 467 ¾

Support: 457 ¾-461 ¾***, 450 ¼**, 440-443 ½**

 

For more information please contact DAW Trading at brokersedge@dawtradingdiv.com or at 877-329-0006 and visit us at http://dawtradingdiv.com/brokers-edge/

 

 

Disclaimer:

Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. DAW Trading (“DAW”) uses various outside sources for research material regarding futures and options on futures trading therefore the views and opinions expressed in this letter may not necessarily reflect the view of DAW or its staff. The information provided is designed to assist in your analysis and evaluation of the futures and options markets. However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to DAW.

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