Have Wheat Prices Topped Out ?

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Wheat Futures---Wheat futures in the December contract is currently trading lower by 10 cents at 6.22 a bushel or 1.62% this Monday afternoon in Chicago as many commodity sectors are lower today due to the fact that the Coronavirus is making new headlines once again as the Dow Jones Industrial Average is down nearly 900 points.

Wheat prices are trading far above their 20 and 100 day moving average as the trend remains to the upside, however for the bullish momentum to continue prices have to break the October 20th high of 6.38 which happened in last week's trade.

I have been recommending a bullish position over the last month or so from around the 5.40 level and if you took that trade continue to place the stop loss under the 2 week low on a hard basis only standing at 5.87 as an exit strategy, however the chart structure will start to improve on a daily basis later this week as the monetary risk will be reduced substantially.

At the present time I also have bullish recommendations in soybeans and soybean meal which continue to hit contact highs today as the entire sector has entered into a long-term bullish secular trend in my opinion so stay long as the volatility will remain extremely high.

TREND: HIGHER

CHART STRUCTURE: IMPROVING

VOLATILITY: HIGH

If you are looking to contact Michael Seery (CTACOMMODITY TRADING ADVISOR) at 1-630-408-3325 I will be more than happy to help you with your trading or visit www.seeryfutures.com

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