Oats have been holding up better than the rest of the complex overall, with the price action forming a large Rising Wedge chart pattern on the 240-minute time interval. The upper boundary of this pattern was penetrated intra-day following the report, where some selling pressure brought the market back inside the wedge.

A resumption of Thursday's rally with a challenge of the high near $3.50 a bushel would signal an upside breakout, with a projected forecast well above this high. As the wedge has narrowed considerably since its development, a minor retracement below the support at $3.35 per bushel would trigger a downside breakout. If this does occur it would call into question the likelihood for oats to sustain the current uptrend, and invite a retest of the support at the base of the wedge near $3.20 per bushel.

For further information on this and other Autochartist products, visit our website at www.autochartist.com