Wheat prices have now erased their early gains that reached lock limit, and have returned to the price level where they started the day session. This has created some excellent trading conditions while corn and soybeans have been somewhat lack-luster and erratic.
On the daily chart (not shown), wheat has also reached the resistance area of the upper Bollinger Band. Statistically, if wheat price continue upward, they will move outside the area of 2 standard deviations. The next few days will be critical for wheat prices, whether they continue upward and enter the area outside 2 standard deviations, or whether they return to within the bell curve and remain with a single standard deviation. If price continue moving higher, this would be an indicator of a new bull trend.
Tuesday, January 29, 2008
Back to Flat: Wheat Prices Retrace to Start of Session
