Double Bottom Breakout In U.S. Wheat
ashok kamarani | Apr 19, 2016 03:36PM ET
U.S. wheat prices were in downtrend from June 2015, making lower tops and lower bottoms from $617 to $442, and now during March 2016 prices made a low and bounced back to $480.
Again, prices made a higher low on April 2016 around $446, and prices surged and breached the resistance $480. Technically it made a double bottom, with a one-month difference with higher lows, and given a breakout on April 19th 2016 at $480.
Now the potential upside target for US wheat is $530, and any closing below $446 will invalidate the double bottom pattern.
Indicator view: MACD has positive divergence with prices and crossed the center line, showing bulls are powerful and can take away the prices until $530.
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