Wheat price met initial target at 422.00 on acceleration above one-month congestion

Slobodan Drvenica Windsor Brokers

WHEAT

The wheat price eventually broke higher after being congested within 389.75/411.25 range for one month. Thursday’s strong bullish acceleration that marks the biggest one-day gains since 02 Sep, broke above daily cloud top and extends today to fresh nearly two-month high at 422.00 (Fibo 38.2% of larger 523.25/360.75 June / Aug descend). This marks the first pivot (reinforced by falling 100SMA) for stronger recovery, which could extend to next triggers at 432.00/434.00 (lower tops of 14 Aug/24 July).

The price is on track for the strongest weekly gains in nearly one year and this gives strong bullish signals for extended recovery.

Bullish daily studies show room for stretch above 422 towards 432/434 barriers, where the price may show signals of hesitation.

Buying dips is now favored, with initial support at 412 zone (Fibo 38.2% of two-day recovery) end extended easing to find support above 406 zone (converged north-heading daily Tenkan-sen & and Kijun-sen lines).

Res: 422.00; 428.50; 432.00; 434.00

Sup: 418.00; 412.00; 406.00; 400.00

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.

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