WHEAT

I think it is time to revisit our agricultural commodity charts. Especially the latest bullish development on Wheat prices. Agricultural commodities have been weak. They are more than 50% lower from their 2008 levels. Though, a change in trend is in progress. Wheat prices tested long-term trend line support and prices have rebounded.

On the daily chart price formed an inverse head and shoulder with the short-term resistance standing at 545 levels. Breakout from this short/medium-term base formation can result in an uptrend towards 640-650 area. Both the short-term and the long-term charts suggest higher prices in the following months. A decisive break above 545 levels will confirm the inverse head & shoulder chart pattern.