Good morning Traders!
The price of Wheat continues to slide, following the break of the major Support level at around the area of 740, the market has then retested that level, consolidated for a while, and then finally, broke to a new Lower Low.
Drawing the Fibonacci retracement of the latest Daily move, has the 50% retracement clustering nicely with the support area at around the 660 level, and the 61.8% retracement clustering with the previous Daily swing Low.
I’ll be looking for the pullback to continue to around the 50% to the 61.8% retracement area, and then for a rollover setup. It’s important to note that the market latest Low, went slightly lower than the previous Weekly Low printed in July 2021, however from a Monthly point of view, we are very close to the swing Higher Low, and therefore I will be looking first for signs that the sellers are reversing the pullback and picking up momentum, rather than a pullback entry at the 660 area.
Happy Trading!
