Wheat Price: Short-term path remains to the upside
Wheat futures opened with a gap higher and managed to overcome the highs of 715.55. Nonetheless, the price retreated after meeting resistance at 727.50 (R1). Considering that the RSI fell below its 70 barrier while the MACD sees ready to cross below its trigger line, I would expect the retracement to continue and I wouldn’t rule out a dip below the 715.55 (S1) support. Such a dip may challenge the blue uptrend line near the 707.00 (S2) barrier. Nonetheless as long as wheat is printing higher highs and higher lows above the uptrend line and above the moving averages, the short-term path remains to the upside. I see the current decline as a corrective phase before the bulls take control again.
• Support: 715.55 (S1), 707.00 (S2), 695.20 (S3)
• Resistance: 727.50 (R1), 741.50 (R2), 747.00 (R3)