Wheat Retreat Not Yet Complete

The Commodity Specialist view - Following an earlier surge in Wheat prices a normal correction from an early Aug high developed. After a pause this has got going again, and we look for likely lower supports now.

• WEEKLY CONTINUATION CHART: After the earlier strong surge a corrective phase still looks to be in process. This leaves higher targets such as prior 952.75/ 961.75 highs and the 987.00 61.8% recovery level out of reach for now. Meanwhile the former Nov-09 583.50 high offers next interesting support for a further setback.
• DAILY CHART – DEC-10: Another bear leg has emerged after recent consolidation, putting pressure on the 660.00 Nov-09 high area so far. However, focus is also on lower retracements, particularly 76.4% at 566. This exactly coincides with an equality target (Aug downleg extended off 757.00 Sep high). Note that this lies quite close to the Nov-09 high from the Weekly chart. This therefore offers an interesting support/target area. Overall, weakness continues to be regarded as a temporary affair.

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