WHEAT finds buyers again around 511.50
Wheat (WHEAT) Technical Analysis Report for Jun 01, 2020 | by Techniquant Editorial Team
WHEAT finished Monday at 515.50 losing $6.00 (-1.15%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (WHEAT as at Jun 01, 2020):
Monday's trading range has been $9.25 (1.78%), that's below the last trading month's daily average range of $11.18. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for WHEAT.
After moving higher in the prior session, the market closed lower but above the previous day's open today, forming a bearish Harami Candle. The last time this candlestick pattern showed up on November 4, 2019, WHEAT actually gained 1.02% on the following trading day.
After having been unable to move lower than 511.75 in the prior session, the contract found buyers again around the same price level today at 511.50.
Although WHEAT is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could speed up should prices move above the close-by swing high at 522.25 where further buy stops might get activated. With prices trading close to this year's low at 491.50, downside momentum could accelerate should the market break out to new lows for the year. Further buying might move prices higher should the market test May's nearby high at 528.00. Further selling could move prices lower should the market test May's close-by low at 493.75.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Harami Candle" stand out. Its common bearish interpretation has been confirmed for Wheat. Out of 52 times, WHEAT closed lower 55.77% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 55.77% with an average market move of -0.30%.
With five out of the other seven Commodity Markets closing higher today, the ones that stand out on the positive side are COFFEE gaining 2.04% and SILVER closing 1.8% higher. On the flipside the worst performers have been NATGAS closing -3.07% lower and CORN losing -0.46%. Read more