Chicago Wheat continues lower as it works out a larger pivot

Sellers have relentlessly sold wheat making new swing lows.

Since September, continuous Chicago wheat has never once seen a structured area on the chart eclipsed. That price action has told us about all we needed to know when it comes to the health of the wheat market. It appears quite possible that wheat is searching for a swing low and may have scored exactly that during Friday’s trade. The upside for any pullback is likely to encounter sellers at $7.40 where price had congested before accelerating through the floor. Once price deals with the congestion at $7.40 the next larger target will be the swing highs at $8.00. Wheat is likely to remain volatile as price works a larger swing pivot.

July Chicago wheat has also been making new lows with price having retested significantly important structure. Price appears to be finalizing the process of the C pivot which will likely confirm once price works back above $7.00. An important area on the chart is likely to be at $8.10 where sellers will attempt to stand their ground.