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Wheat Beat: Impending Breakdown?
EWI's Daily Futures Junctures warned of wheat's recent decline amidst the bullish chorus.
By Nico Isaac
Wed, 21 Mar 2012 16:00:00 ET
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If you had checked the mainstream financial "weather" report regarding the wheat market since March 16, the forecast would have shown a huge satellite image of an impending bullish storm. Headed straight for the grain were these strong up-winds: 

  • Two international banks made joint recommendations for wheat "as the best buy among Chicago's big-three crops."
  • High temperatures in the US wheat belt
  • An increase in "winter-kill evidence"
  • "Signs that demand is improving from other countries"
In the words of one March 16 Reuters: "The wheat market is bullish in general. With Chicago's performance, it's difficult for us to fall"
 
Yet -- FALL is exactly what wheat prices did. The next trading day (March 19), wheat prices turned down from a one-month high in a sharp sell-off to the two-week lows we see now.
 
Now, while the fundamental experts were bolting down their lawn chairs in anticipation of wheat's bullish storm, EWI's chief commodity analyst and Futures Junctures Service editor Jeffrey Kennedy had his sights set on wheat's downside.
 
In the March 16 Daily Futures Junctures video update, Jeffrey laid out his near-term Elliott wave wheat outlook via the following chart and analysis:
 
"In wheat, we're still holding to our operative [Elliott wave] labeling. ... Prices need to hold below 696 -- critical resistance -- in order for the immediately bearish interpretation to remain viable."
 
 
And, in the March 20 Daily Futures Junctures, Jeffrey revisits the wheat market to reveal exactly what prices must do to increase the odds of one Elliott wave scenario.
 
Don't wait another second. Get instant, RISK-FREE access to Jeffrey Kennedy's beloved Futures Junctures Service and see the complete Daily Futures Junctures today.
 
 
 
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Tags: Daily Futures Junctures, Elliott wave, fundamental analysis, futures trading, Jeffrey Kennedy, wheat futures
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