Wheat futures drifted towards a retest of key level support in Thursday's session, as identified by Autochartist and shown here on the hourly chart. This push lower indicates a likely continuation towards the horizontal trend line at 573.75 cents per bushel, where a confirmation of the support will be needed if the market is to recover and turn higher.
The Autochartist Key Level indicator scores the significance of this approach to support at a high 9 bars, with the multiple successful tests of the level over the course of the month highlighting the technical strength of this price.
A continuation of selling pressure to below 573.75 cents per bushel would signal a failure of the level and may set in motion another substantial downtrend in the near term. Conversely a rebound after moving to this level would make for a solid long entry spot on the chart, with a stop-loss order placed beneath the zone to protect the position. Short term chart pattern formations are likely to form on the emerging patterns platform as the test of this key level develops.
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