Long term technicals put a shine on wheat

I am Stephen Davis, senior market strategist at Walsh Trading, Inc., Chicago, Illinois. You can reach me at 312-878-2391.

The charts below suggest higher wheat prices in the weeks ahead. Last week's rally helped boost the technical outlook for wheat. 

The first chart below shows the daily May 2025 wheat futures prices. We have five days of higher highs and higher lows. That's a trend, in my opinion, and the technicals are leading the way. 

On February 21, the May 2026 wheat price went above the 200-day average, which is represented by the black line on the chart. In my opinion, the price will stay above that. The trade I suggest is to buy a pullback to the 200-day moving average. 

The trade strategy is to buy May 2026 wheat at 560.0, good til cancelled (GTC). Today's settlement price was 573.0. Be patient with this entry. Risk the trade at 549.0 stop, GTC. Profit objective on the trade is 580.0 GTC. This is a good risk/reward ratio, in my opinion.

To discuss trading strategies, contact me anytime. Have an excellent day. 

Stephen Davis
Senior Market Strategist 
Walsh Trading

Direct 312 878 2391 
Toll Free 800 556 9411
sdavis@walshtrading.com  
www.walshtrading.com

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