June 9, 2025
Commodity Futures Weekly Newsletter- For the week of June 9th, 2025
Wheat Futures showing reversal pattern at support as reverse head & shoulders pattern emerges.
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A publication by the Research Team at Capital Trading Group: 800-238-2610
Grains
Wheat Futures
Wheat Futures show a reversal pattern at Support.
Wheat Futures have been moving lower, setting multi-year lows in May 2025 at 506’2. After a successful defense of support of 500, the bearish follow through did not materialize. Wheat Futures may have set at least a short-term low. With RSI at 61.87, above 50, bullish sentiment has risen.
A Reverse Head & Shoulders chart pattern emerges
To keep the series of lower lows and lower highs in place, Resistance at 569’2 must remain intact. This looks to be challenged however after a potential Reverse or Inverse Head & Shoulders chart pattern appears visible. The idealized model is overlayed upon the chart. By definition, the Reverse Head & Shoulders pattern is a potential reversal pattern that forms at the end of a downtrend. It has three successive troughs, with the middle trough being the deepest as the Head, in between both Shoulders. The break of the Neckline would signify the pattern is likely active. This portends a breach of Structural Resistance at 569’2 would become favored.
Conclusion
With the RSI above 50, at 61.87, sentiment has reversed and is now Bullish. This coupled with the inability to extend the downward price action beneath 506’2 to break 500 and a Bullish reversal pattern emerging in Wheat Futures has the analysis shifting from Bearish to below 500, to at least Bullish to above 569’2. While 506’2 remains unbroken, the chart favors higher prices.
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Thank you!
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