The Wheat Continuous Contract (@W) has been in a down trend for over a year, but recent price action may suggest a trend reversal is underway. The pace of the downtrend had initially accelerated going into 2013, when the price action transitioned from a downward sloping price channel to an even steeper one. However, the pace of the decline stabilized in the first few months of the year and the continuous contract started to form a triangle formation (go to the blog for the chart; then see the dark blue lines).Fast forwarding to today, the diagonal triangle has finally been breached to the upside and the @W has also broken its short- to intermediate-term moving averages. The price action has now its sights on the 200-day moving average, which is just above current levels.
Market Focus: Wheat
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
More than 30 investing pros with skin in the game give you actionable insight and investment ideas.