Wheat: Trend Down?
Eddie Tofpik | Feb 06, 2017 09:15
Wheat: Despite being fully bearish last time two months ago, I did at the time add the following after seeing the closing long white marubozo on the 2nd of Dec ‘Only last Friday, with some profit-taking and a closing long white marubozo, did the pressure become alleviated a little. However, if prices fail to gain and maintain over 399 5/8 in the next few days then the pressure will be back on'.
This is the only saving grace for my review in a market which turned up on a reverse H+S, formed a bullish channel (375 ½ - 440 1/8) and is back seemingly testing the Jun 2016 – Aug 2016 50% Fib resistance at 441 5/8 with the added help of a key reversal up on the weekly chart, though the 441 5/8 level does look interestingly strong perhaps. We also have possibly a smaller bullish channel (417 ¾ - 449 ¼) formed since Dec 2016 which is also nascent. Overall, bullish outlook but with a question mark on the bullet point until the intentions become clearer if we go through 441 5/8.
Support is additionally currently at 422 ¼ (combo), 412 ¾, 409 1/8, 390 5/8, 392 ¾ and 390 1/8.
Resistance is additionally currently at 434 ¾, 437 ½, 439 ¾ then nothing really (apart from the previously mentioned minor bullish channel) till 461 1/8.
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