Wheat Moving Higher , Prices Could Remain Strong Into Q1 2015
Mike Macdonald | Dec 09, 2014 12:32AM ET
Wheat (via Teucrium Wheat (NYSE:WEAT)) has begun to show signs of improvement, with prices moving steadily higher from the September low, pushing above the falling moving average. With positive divergence also unwinding on the rising RSI, expectations are for prices to remain strong into 2015Q1.
First significant resistance is at 0.566, which is approximately 12% above current levels. A break above here would then open up highs from April, which are approximately 15% above current levels. Anticipated gains are delayed if prices break back below the moving average, but with investor sentiment improving, any pullbacks are likely to be limited, and viewed as fresh entry opportunities.
Money managers can adopt an overweight allocation to Wheat.
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