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Wheat CBT Futures (W) - SPIKE LOW »» Weekly Summary Analysis
By: Marty Armstrong | October 3, 2020

Wheat CBT Futures closed above our indicating ranges on the Daily level. It closed today at 5732 and is trading up about 2.61% for the year from last year's settlement of 5586. As of now, this market has been rising for 3 months going into October reflecting that this has been only still a bullish reactionary trend.

Up to now, we still have only a 3 month reaction rally from the low established during June. We must exceed the 3 month mark in order to imply a trend is developing.

While the historical perspective of the of this market included a decline from the major high established back in 2008 moving into a major low in 2016, the market has bounced back for the last 4 years. The last Yearly Reversal to be elected was a Bearish at the close of 2016.

This market remains in a positive position on the weekly to yearly levels of our indicating models.

Solely focusing on only the indicating ranges on the Daily level in the Wheat CBT Futures, this market remains in a bullish position at this time with the underlying support beginning at 5532.

On the weekly level, the last important high was established the week of September 28th at 5870, which was up 14 weeks from the low made back during the week of June 22nd. So far, this week is trading within last week's range of 5870 to 5376. Nevertheless, the market is still trading upward more toward resistance than support. A closing beneath last week's low would be a technical signal for a correction to retest support.

The broader perspective, this current rally into the week of September 28th reaching 5870 has exceeded the previous high of 5684 made back during the week of August 31st. Right now, the market is above momentum on our weekly models hinting this is still bullish for now as well as trend, long-term trend, and cyclical strength. Looking at this from a wider perspective, this market has been trading up for the past 7 weeks overall.

Interestingly, the Northrop Grumman has been in a bullish phase for the past 6 months since the low established back in March.

This market is trading beneath that high of January which was 5924 by more than 2 percent. Critical support still underlies this market at 4591 and a break of that level on a monthly closing basis would warn of a further decline ahead becomes possible.

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