Technical Update - Wheat prices in decline testing key support. Corn and Soybeans range bound. Coffee on the rise
Kim Cramer Larsson
Technical Analyst, Saxo Bank
Wheat is in a confirmed down trend closing below 1,034 support yesterday. RSI below 40 and testing key support at 972. A Daily close below is likely to fuel further sell off down to around 900-887. To reverse the bearish picture Wheat must close above 1,109.
Read our Commodities specialist, Ole Hansen's report about the background here: https://www.home.saxo/content/articles/commodities/finally-some-good-news-as-food-prices-ease-21062022
Soybeans has been range bound for the better part of 2022. A range that needs to be broken for direction.
Corn couldn’t stay above the falling trend line after bullish break out last week. RSI is still showing bearish sentiment indicating Corn to weakening further. 725 is key support that is likely to be tested.
If Corn prices again breaks above the upper falling trend line RSI must confirm the uptrend by closing above 60 threshold. If it doesn’t it could be another false bullish break. If that scenario plays out 825 is in the cards.
Coffee is technically in a short-term uptrend. RSI positive sentiment. Coffee is likely to test 242. If it closes above February highs at around 260 is likely to be reached.
For this bullish scenario to be demolished and reversed a close below 218 is needed.
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