Wheat Sell Off About Over

This wheat sell off was a bit more extreme that I had anticipated.  I thought prices would be supported around $8.00, but sure enough, July wheat fell to $7.56, which happens to be at a place of key horizontal technical support.  If you are feeling a little freaked, I could understand.  Keep in mind however that wheat is at an extreme now, and the market should be poised for a modest bounce.

In the chart below, I have highlighted the actionable places I see on the chart.  I am saving this chart for further reference in the future to help explain the tools I use, and will explain further in a nearby future post.  For now,  know that we are at a useful place in the market to lift hedges or to sell some puts.  The number on the chart is at 16.  This would be in a similar place as the market was back on number 5.  

The plan as I see it would be to lift hedges for now, or to sell some short dated puts.    Price is .42 off the crop insurance floor if you carry an 85% crop insurance policy, so a sale now is not removing that much risk.  The next actionable area would be once prices pushed back into the 200 day moving average around $8.00.