WHEAT

While global equity markets and commodities are experiencing sharp corrections, an underperforming commodity in the grains complex, wheat started breaking out of its range. Latest technical action is similar to the earlier breakout that wheat experienced in the summer of 2010. In July-August period it took 4 weeks for wheat prices to rally 60% after the breakout.

Wheat is breaking out of its consolidation in a similar fashion by recording a strong weekly close above the 200 day moving average and the trend resistance. Watch this commodity with a bullish outlook by placing an intermediate term stop loss at 650 levels.