SINGAPORE: CBOT May wheat is biased to revisit the April 18 low of $6.04-1/4 per bushel, as indicated by its daily candlesticks pattern.
A rebound from that level has failed a resistance at $6.29, the 38.2 percent Fibonacci retracement on the fall from $6,68-3/4 to $6.04-1/4, leading to the formation of a "dark cloud cover".
This pattern signals the bears are stronger than the bulls, increasing the chance of another black candle to form on Monday.
However, such a pattern is generally less effective at the low of a downtrend than at the high, as a result, it might be invalidated by a sudden surge.
No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.
Comments
Comments are closed.