No Clear Trend Emerging For Wheat
Eddie Tofpik | Mar 02, 2015 13:10
So I turned the bullet point on Wheat fully bearish on what I considered sound logical; reasoning and found that the one support – the Middle Tine of the May 2014 – Dec 2014 Andrews Pitchfork (currently 473) was absolutely enough to turn the market around back up at that time! Surprising to me but true! Prices rallied until the 17th when they hit the combination resistance formed by a Fib, Medium MA AND the Middle Tine of the Schiff Pitchfork of the same move as the previously mentioned AP – all at 547!
I made a point of mentioning the 17th as if you recall reader I wrote at length last time of the Bow Tie Formation on the MAs and how it would kick in between the 13th – 17th of Feb. Lo & behold - on the 17th the bearishness kicked in, admittedly after a run up but it was timely hitting the resistance before heading back down. Prices didn’t quite make it to the previous low before starting back up but it was suitable! So what now? Well, we’ve had a Key Reversal Down on the Weekly Chart two weeks ago but prices recovered. We also have another Bow Tie formation in the offing with the Short/Medium, Medium & Long MAs all converging just over 547 – another bearish force on top!
Then there are the crossovers – actually I have finessed it to only one crossover, the 16th – 17th Mar! It would be reasonable to expect increased volatility and possibly direction change or direct affirmation at that time! Finally, I would also point out that we may have a Double Bottom formed over Jan – Mar with a possible target area around 600 but it seems currently unsure as it has only been partially formed and then only last Friday!
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