Wheat (futures)

Hi,

today a little look to the Wheat (continuous futures) and the way it has been on a very harmonic mood since 2010.

Harmonic ratios have indeed work very well so far. You can see on the figure below first a bearish harmonic impulse wave with a 88,6% retracement (in blue color). Inside this pattern a bullish 5-0 pattern (which failed on the 50% retracement) and so on with the red pattern...

It seems that prices are heading to the 600USD where there is a concentration of Fibonacci ratios and that could be a good entry for a trade on the long side provided PRZ is validated on that level.



Before that watch for a possible bullish reaction on the 580 USD support. However be aware that prices are currently on phase 2 on Bollinger bands (i.e. bearish impulse with volatility increase) so don't try to catch the knife.

See U
Pj.

CAC update

Hi,

High volatility turns difficult any reliable forecast. So let's look at the CAC on a very short term perspective.

The index has validated a bullish AB=CD (with a perfect 50% retracement between B and C).
On the same time, watch for a possible bearish harmonic impulse wave pattern on the way with a PRZ at 3069-76. Do not anticipate shorts, wait for reaction on the PRZ. We may be at the beginning of a rally in a bearish market.



see U.
Pj.

CAC update - Andrew's pitchfork

Hi everybody,

Quick update of the current bearish trend on a 2hours time frame.

The bearish move has been perfectly delimited by a channel formed by the outer line fibonacci 113% and the inner line Fibonacci 23,6% of the bearish pitchfork. Note that each bullish correction has reached the 78,6% and each bearish extension has reached 141% except the last one that stopped on the 127% extension. That may be a sign that the bearish trend is loosing strength or at least stop in the short term.
Note that prices did not reach the MLH of the pitchfork (inside the time box) so this may be an indicator that the bearish trend is not that strong and that prices may break the bearish pitchfork on the upside, i.e. initiating a bullish trend.



Before that, we should see an attempt to fill the gap left between 3937 and 3956. Above we may reach the parabolic SAR currently at 3979 (on 2hours time frame). For trend followers, only a break of 4016 will definitely validate a trend reversal.

Good trades
Pj.