Wheat Thins: July KC Wheat

John LunneyGeneral Commentary

July KC Wheat

     The advance in the July KC Wheat contract stemming from the summer lows of 2016 seems to be unfolding in a complex manner. From an Elliott Wave standpoint I could label the sequence a few different ways. I am current leaning towards the more bearish alternative. Should the market close the week below the critical 531 1/2 level it will appear to me to be vulnerable to a continued follow through. My first minor downside target comes in at +/- 506. I’d be expecting a reaction off here.  I believe any subsequent rally that lays out in an non-impulsive nature will be rejected. A crack of the previously identified support price will look to extend to the major underneath objective of +/- 490. A daily close will above 535 will take the heat off this market. Should this play out prices could rise to challenge the sloping pitchfork at roughly 555. A violation here should attempt a run at +/- 580. Please follow along with me as I will be addressing the structural evidence of this and other futures markets.

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