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Wheat: Trend?

Published 07/08/2017, 06:59
Updated 09/07/2023, 11:32

Wow... what a blowout! I was very happy to move the bullet point above last time into fully bullish. Now that we've had the blowout and the newly drawn December 2016 - April 2017 Andrews Pitchfork has more or less encapsulated the market, it is time now to look at what is next. First off, the bullet point above moves from mildly bullish into neutral. Though we've not as yet breached the Medium MA (currently 449), we've broken down through the recent 50% Fib at 477 34 with consecutive closes, so I think it appropriate.

Where next is the question? We are barely holding on if at all to combined support from the Lower Tine of the AP and a number of Fibs and highs...all between about 458 - 464.

We have actually closed below these levels but only the once so far...hence the 'hanging on'. The Medium MA is the next obvious target on the downside and the Long MA (currently 432 34) is the next one after that. It may be likely that we will see the Medium MA taken out but the Long MA is currently sitting in some reason able support and though close, may not be that easy to ease out. Topside, we'd need consecutive closes over the 477 34 Fib to even start looking better and over the very recent 50% Fib at 504 % to look good. Neither seems likely at the moment.

Support is currently at 449(dynamic), 441, 434 %, 432 34, 421 %, 416 % and 398 34.

Resistance is currently at 458 - 464, 474 %, 492 %, 496, 504 %, 510, 517, 521 34, 533 % and 556 %.

Wheat Chart

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