Wheat Cut Back after Recent High Yield for Bulls

The Commodity Specialist view - Price action in Wheat was relatively subdued earlier this year, main interest being long term chart support that had continued to hold. Initial bull signals in July were quickly followed by an impressive surge higher, but a temporary retracement is now in process.

• MONTHLY CONTINUATION CHART: The collapse in Wheat prices put pressure on the 76.4% retracement of the whole1999-2008 upmove. But good support from the lower 434 2002 high has held nicely.
• WEEKLY CONTINUATION CHART: This chart has, phoenix-like, come to life, violating certain obvious resistances - in particular the 38.2% area and former 730/740 lows. Here, the former Nov-09 583.50 high offers next interesting support for the current setback. In the event of another surge our focus would be on prior 952.75/961.75 highs and the 987.00 61.8% recovery level. The interest is as much in this longer term chart as it is in the Daily chart now.
• DAILY CHART – DEC-10: The pullback following a dramatic surge higher found initial support from the 38.2% retracement area. Lower supports of interest now are the 660.00 Nov-09 high area, and 566.00 76.4% retracement level. Note that this latter lies near to the Nov-09 high on the Weekly chart and good support is likely here, if not before. Weakness is currently assumed to be temporary.

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