Wheat: Severely Oversold
Jason Sen | Jul 24, 2014 04:16AM ET
Wheat severely oversold with a potential positive double bottom formation. Yesterday's candle was also positive and we can dare to believe a recovery will follow. A test of resistance at 560/561 could be seen. We should struggle here but a break higher is more positive and can target 571/573. This should hold a move higher. However above 578 is more positive and opens the door to 578/579 then last week's high at 584/585.
Any weakness must hold crucial support at 546/544. It is worth buying in to longs today with stops below 542. This is a very low-risk strategy with good upside potential if we have bottomed. However be aware that a break lower will target 540/539, 535/534, 529/528 and possibly even as far as 525 this week.
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