CBoT wheat weeklyThe weekly continuation chart shows that the price has been moving in a long term descending trending price channel that started in July of 2012 at around the 900/930 level and gradually channeled price down to 466 in September 2014 after which price made, although reluctantly, a new low at around the 485 level during August 2016.
From late December 2016 onwards price hesitantly started making modest new highs and has not tested back the most recent low. The interesting in this price channel is the fact that price has not been testing the lower line of the channel since September 2014 and made only one modest lower lows on the chart since.
Price has developed a descending wedge that roughly started between May and September 2014. The TA rule of an ascending wedge is that price, eventually, will break out of same wedge to the upside which usually happens between 2/3rd and 3/4th of the wedge and which has happened 3 weeks ago indeed. Usually, price then makes a test back to the upper line of the wedge which then serves as support which now seems to be developing.
