Wheat futures set up for an approach towards long term key resistance in Tuesday's trading session. After binding up in a narrow trading range just below this key level for the last several sessions, the chart suggests a move to challenge the key level may be unfolding shortly. Autochartist identified the resistance just above the $6.52 per bushel level and has been monitoring the price action as the market pivots around this area.
The multiple retests of $6.52 per bushel through the course of the latest recovery were only met with success once, when the price managed to hold above the level for a few trading sessions before giving up the ground. The latest retracement has proven to be a shallow one however, giving a bullish slant to the chart analysis and paving the way for another push to over the resistance to retest the highs.
A successful move above the $6.52 per bushel level with follow-through buying would encourage traders to begin viewing this as a long term support level, with prices unlikely to drop substantially beneath it once a stable base has been established. If the price is repelled quickly upon testing the level, it would suggest it remains a formidable resistance level and discourage buying in the near term. For further information on this and other Autochartist products, visit our website at www.autochartist.com
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