• Wheat reversed from resistance area
• Wheat to fall to support level 734.00
Wheat recently reversed down from the powerful resistance area located between the major resistance level 772.30 (previous multi-month high from August) and the upper daily Bollinger band. The downward reversal from this resistance area created the daily Japanese candlesticks reversal pattern Shooting Star – followed by the daily Doji – signalling market indecision before today’s reversal.
Given the strength of the aforementioned resistance area – Wheat can be expected to fall further toward the next support level 734.00 (former resistance level which stopped the previous sharp upward impulse wave at the start of August, acting as the support after it was broken).