Tech Guy Comments on the SR Wheat market 1/28/26

Chart patterns can be used to obtain price objectives. Patterns can be a double bottom or top, a head & shoulders, or even the range of a sideways channel. Among other factors, SR Wheat recently formed an upside down head & shoulders pattern on the 8 hour intraday chart.

All that is needed is a measurement of the price range of the pattern. In wheat, it is the distance from the neckline down to the head. Our example in wheat shows that difference is about 25 cents, as you will see on the chart. The other task is to add the 25 cents on to the breakout of the neckline. 25.0 + 530.0 +/- = approximately the price of 555.0.

Yesterday and today's trade appears to show a solid breakout higher. Therefore, the 555.0 target is the next most likely objective. The market will should correct down some after 555.0 is obtained. If the bulls remain in charge at this point, the backfill will be more shallow.

The other important feature on the wheat chart is that the January low marked the first higher low since the 2022 rally. This evidence is at the very least, somewhat bullish. Please study the details and text on the chart to understand better what is being said.

We also have a Fibonacci example. The most common Fibonacci numbers are 38%, 50.%, & 62%. The fact that the H&S target occurs at the old highs to the left is not a coincidence. The neckline (swing highs) is about a 50% move higher against the previous down move. 50% + 50% = 100% - at the previous highs.

Next Corn targets are 438.0 - minor resistance, then 448.50 - likely correction from here.

Next Soybean targets are 1118.0-1124.00, then 1142.50.

Therefore, the corn and soybean charts have further confirmed the upward movement bias as of today's trading session.

Oats:

Old timers will tell you, Oats knows! What do oats know? The price outlook of corn! If the price of oats is in an uptrend, corn will soon follow and vice versa. While that may have been true when horsepower came from horses whose primary energy came from oats, it is not something you should bet your farm on these days.

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