Wheat price corrects recent strong rally; daily Tenkan-sen expected to contain extended dips
|WHEAT
Pullback from fresh two-month high at 427.75 found temporary support at 415 zone (Fibo 38.2% of 395.75/427.75 upleg), which should ideally contain correction before fresh attempts higher.
However, downside remains vulnerable of deeper pullback as near-term studies are weak and Slow Stochastic that reversed from overbought territory shows more space at the downside. Next good support lies at 411.75 (daily Tenkan-sen/50% of 395.75/427.75) and extended pullback should reverse here to keep broader bulls unharmed.
Falling 100SMA that capped recent rally, currently lies at 422.60 and marks the first significant barrier, ahead of 427.75, peak of last Friday, break of which would trigger further upside towards targets at 432.00/434.00 (lower tops of 14 Aug / 24 July). Close above 422.80 (Fibo 38.2% of broader 523.25/360.75 June – August descend) is required to confirm bullish scenario.
On the downside, slide below 411.75 will open breakpoint at 408.00 (daily Kijun-sen line/Fibo 61.8% of 395.75/427.75), loss of which will be bearish.
Res: 417.75; 422.25; 425.00; 427.75
Sup: 415.00; 412.75; 411.75; 408.00
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