I spent the better part of last night analyzing the current wave patterns in the wheat market. Breaking it down in classic top down fashion. That is, starting with the monthly charts and working down to the short term daily charts. This is the only way to see the dominant forces at work and to better position ones self for the next sequence of events. It is my view that the lows established in late August of 2016 marks the termination of an ending diagonal c wave. This in fact also marked the X wave low of a larger W-X-Y-X pattern. Leading me to anticipate an upcoming Z wave which would unfold in an a-b-c pattern. All very confusing for those of you unfamiliar with Elliot Wave Theory. It is, in my opinion, the best method to understand and anticipate the markets structural patterns. So where do we go from here? In my view, with the contract holding above 420.0, the next measurable target comes in at +/ 510.0. That’s focusing on the nearest weekly continuation contract. Ultimately a complex a-b-c pattern would extend to…here we go…900.0. Any breakdown holding below 400.0 would alter this outlook.
