Wheat futures (symbol: W) continues in consolidation mode. A potential buying opportunity is on the horizon, however, we believe it is from lower levels. Patience is required.
Wheat continues to trade lower in the channel originating with the high of Jul12. Volatility has moderated and stochastics are in overbought territory. While the RSI has dipped, it has yet to confirm a buy signal.
We’re looking for a retest of the $5.50 or $4.25 support levels followed by a breakout above the upper channel line.
Murphy & Co’s Wheat model is currently short. To learn more about Murphy & Co’s position models, visit http://murphycofutures.com/position-models/.