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Wheat: Trend Down?

Published 06/11/2017, 06:06
Updated 09/07/2023, 11:32
ZW
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Wheat

WHEAT Chart

I had the market at Neutral last time but that did not prove to be the case. Whilst noting then:

Market started to show signs of strain - two Indecisive Doji Crosses and ultimately a failed Key Reversal Up last Wednesday as the top end ran into the key 50% Fib of the December 2016 - Julyy 2017 move at 463. Prices have come off since then back below the Medium MA possibly with a Tweezer Top Pattern...I'm not convinced on that one but Friday's first move back below the Medium MA is interesting.

I also should have given more weight to the Bearish signals. Since then, we've seen the market not only consecutively close below the Medium MA but also below the Long MA as well as the most recent 50% Fib at 428.

We rallied up to this last resistance on Friday but seemingly failed with a slightly higher Indecisive Spinning Top Pattern. The pressure is not overt to push lower but it is seemingly relentless and the Bearish Channel we seem to have found ourselves within over October does not look stressed. Consecutive closes outside the Upper Channel Line (currently 435) or Lower Channel Line (currently 411) would see likely to show the next move...unless we just carry on lower within the Channel. As we are below all MAs and despite only one MA showing overt Bearishness, I'm minded to make the bullet point above Mildly Bearish.

Support is currently at 420, 416, 411 (dynamic), 401 and 394.

Resistance is currently at 428, 435 (dynamic) - 436, 440 (dynamic), 443 and 451 (dynamic).

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