Wheat – Mid Term Forecast
Wheat is waking up — and if you’ve been ignoring it, you might regret it. After months of quiet accumulation, the chart just fired a set of signals that we haven’t seen in a long time. The setup hints at a move that could develop much faster than most traders are prepared for. In this mid-term forecast, we’ll walk through what just happened, why it matters, and what price levels come next if this really is the start of something big.
CANDLES
Wheat confirmed a bottom on the weekly frame with an aggressive daily move that also flipped the daily trend bullish. If the momentum holds through the last week of October, the commodity has a real chance to end the month with a Bullish Engulfing and break above the 8-month EMA resistance. Let’s keep our fingers crossed.
ELLIOTT WAVES
Mid Term
There is a possibility that wheat has completed a humongous Ending Diagonal, the same structure I’ve been tracking since August. The possible target from here — in an aggressive counter-move — is roughly a double in price.
Short Term
If we zoom in, we can see a possible completion of a double Ending Diagonal. If this hypothesis materializes, a super-strong move — returning the price to 620 and then to 1000 US¢ per bushel in a very short period of time — should not be a surprise.
Per Elliott/Prechter:
SUMMARY:
Wheat possibly formed a strong bottom in a very aggressive manner, which indirectly supports the hypothesis of completing one or even two Ending Diagonals of different degrees. The wave off the bottom is clearly impulsive, and waves i–iii can be considered done, although wave iii could still extend. If wheat completes a full i–v impulse here, it would be a super-strong launchpad for the rally to continue.
Happy Trading!
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