Wheat price maintains bullish tone; close above 422.80 needed to confirm bullish resumption
WHEAT
The wheat price is higher on Monday but still below Friday’s spike high at 427.75, following a failure to close above pivotal 422.80 barrier (Fib 38.2% of larger 523.25/360.75 June – August descend). Fresh bulls attack again this barrier (reinforced by cracked 100SMA at 424.85) and sustained break higher will expose next hurdles at 432.00/434.75 (lower tops of 14 Aug / 24 July), which guard 442.00 (50% retracement) and 446.00 (200SMA).
Daily studies are firm bullish setup (reinforced by formation of daily Tenkan-sen / Kijun-sen bull-cross), however, final push through 422.80/424.85 barrier may be delayed as daily Slow Stochastic in entering overbought territory. Initial supports lay at 417.50 (today’s low), ahead of 414.50 (Friday’s low), with extended dips expected to hold above former range top at 411.25.
Converged daily Tenkan-sen / Kijun-sen lined mark downside pivots at 409.60 and 408.75.
Sup: 417.50; 414.50; 411.25; 409.60
Author
Slobodan Drvenica
Windsor Brokers
Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.
