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Jim Wyckoff's Hot Market

                             Jim Wyckoff's Hot Market

                                       Wednesday morning, March 10, 2010

May Chicago Wheat Breaches Strong Chart Support


Test text

May wheat futures on the Chicago Board of Trade Wednesday hit a fresh 5.5-month low of $4.79 a bushel, pushing below what was strong technical support at the February low of $4.80 3/4. After traders digested a bearish monthly USDA supply and demand report for wheat, prices did initially move off the session low and did poke above unchanged. If May Chicago wheat futures could have produced a close near the session high Wednesday, that would have been one very early bullish technical clue that a market low is in place. When a market cannot sustain downside price action following fresh bearish fundamental news (Wednesday morning's USDA data) then that is a clue that all the bearish fundamental news has been factored into the market's price structure and that the bears have become exhausted at lower price levels. But the wheat bears prevailed after the initial push above unchanged. May wheat is presently trading below a downtrend line on the daily bar chart, drawn from the November, December and January lows. Technical resistance for May Chicago wheat is located at Wednesday's high of $4.93, at $5.00 and then at $5.10. Technical support is located at Wednesday's low of $4.79 and then at the contract low of $4.72. Stay tuned! Jim Wyckoff

Traders, what do the vast majority of all successful traders have in common? They use protective buy and sell stops. You should, too. I have written an e-book called "The Art of Effective Stop Placement."  It's the best trading investment for under 15 bucks you will ever make. This e-book is a must for less experienced traders and an excellent refresher for trading veterans. To learn more about my e-book, click here. --Jim


Do you want an "edge" in this fascinating business of trading futures

Stay tuned! Jim Wyckoff jim@jimwyckoff.com

 

 (Analytical chart above is derived from FutureSource's WorkStation)

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