Bearish Prices For Wheat Ahead
Eddie Tofpik | Sep 08, 2015 14:41
I was reluctant last 4th Jul weekend to push the bullet point above into bullish but felt obliged as all 4 MAs were moving higher at that time… though with a question mark. I am glad I added the question mark as prices fell away soon after and we have since formed new decade lows as well as gapping significantly lower on the move down for wheat on the Daily Chart.
Additionally, the recent decline can been seen more clearly on the Weekly Chart as a huge Key Reversal Down 4 weeks ago, just prior to the gapping action lower. Since then we have established new lows and seem to perhaps be forming a Descending Triangle on the Daily Chart above. I would suggest an initial target would be in the 843 area if it does break (two consecutive closes below the base hopefully to confirm) which would be coincident with a previous low already marked on the Daily Chart above.
Further bearish targets would be 833 & 715, However, this is not the real concern as I have another, is this whole action from early 2014 one huge big Bearish Halfway Hesitation of some form? If that is the case then a doubling down of the recent Channel to target 715 would be nothing compared to a fall to the low 430s which would be the suggestion if the Bearish HH turned out to be the case.
Of course, there will be support before then & I will endeavour to inform you of where potential support & targets may be but this idea now planted in my mind does not seem to wish to leave…just yet anyway! Support is at 873, 842, 833 & 715. Resistance is at 887, 900, 920, 926, 950 & key though currently dynamic at 960. Bullet point goes to full bearish in line with bearish MAs.
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