Wheat – modestly lower prices coming post-harvest later this year

wheat gartleyThe embdded image in this post is one of weekly nearest price action on Chicago Wheat futures. I have overlaid 2 classic Gartley setups on this chart. Notice how the first paralleogram with apex positioned at the 2010 lows actually projects in price and time both !!! to the 2012 highs where panic was starting to grip the markets as people thought food prices were going to skyrocket.

Assuming ( and I hate assumptions like this)….that the lows of last week are going to hold, I have constructed yet another Gartley paralleogram which projects into the future and off the edge of the chart. It shows that several months from now ( post harvest time) we should hit lows in Wheat that are in the $6.75 range.

I shall be watching Wheat closely to see if last weeks lows hold. If not, I will have to re-jig this parallogram slightly.

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