May 19, 2025
Commodity Futures Weekly Newsletter- For the week of May 19th, 2025
Wheat Futures break beneath Support of trading range, registering a new low.
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A publication by the Research Team at Capital Trading Group: 800-238-2610
Grains
Wheat Futures
Wheat Futures break beneath Support of trading range.
Wheat Futures have broken through support at 517‘4. This week, a new 2025 low was registered at 506‘2. We can lower Resistance to the April 2025 high of 569’2 to keep a new series of lower lows and lower highs intact, the sign of a trending market.
Trading Range low at 517’4 breached
Prices moving below 517’4 eliminated the potential that a new cycle higher was building, thereby clearing the way to further downside. The next step lower to 500 and below would be achieved by witnessing a break of this week’s low of 506’02.
A new Bearish Candlestick Pattern emerges
The pattern is as ominous as it sounds, Dark Cloud Cover. The description and idealized model are overlayed on the chart. This implies a potential reversal as prices opened the day at new highs on Friday to end the week but suddenly closed the day more than 50% below the length of the preceding bullish candle, shadowing the previous day like a dark cloud. This would act as a continuation pattern lower.
Conclusion
Favor further downside price movement to follow to below 500, with 425 as the next Support while Resistance at 569’2 remains in place. Use breaks below 506’2 as confirmation. With the RSI below 50, at 44.20, sentiment remains Bearish.
For complete strategies in Futures and Option pricing to potentially capitalize on this analysis, call 800- 238-2610 to speak to a registered broker with Capital Trading Group or request more information on how to get started via email sent to info@capitaltradinggroup.com.
Thank you!
Trading advice given in this communication, if any, is based on information taken from trades and statistical services and other sources that we believe are reliable. The author does not guarantee that such information is accurate or complete and it should not be
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