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The Key to Unlocking Wheat's Reversal

By Euan Wilson
Thu, 17 Jul 2008 10:00:00 ET
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"A bullish key reversal occurs when prices make a new low below the previous price range, but close above the previous day's close."
 
So says Jeffrey Kennedy in Wednesday's Daily Futures Junctures. Key reversals, he continues, are very reliable and significant when forecasting markets -- and this most recent development in Wheat is a crucial one.

That’s because Wednesday's price action was indicative of a change on a larger scale.


There's always something new to learn about trading, and Jeffrey Kennedy is frankly one of the best at communicating how he arrives at his forecasts. His updates aren't just predictions, they're lessons in trading as well. Learn more about Daily Futures Junctures for FREE during FreeWeek: right here.

What does this reversal mean for Wheat in the longer term? If you look at the price chart the answer seems clear. But Jeffrey has another factor in mind. Corn is Wheat's sister grain, yet has had its own ideas about direction over the past few days. Corn seems determined at this point to contradict what Wheat's key reversal has to say.

How can two technical analysis tools arrive at totally different conclusions? Jeffrey's got an answer, and if you're familiar with technical analysis, you already know what it is: be prepared. Wheat's price high may already be place (back in March), so Jeffrey considers an alternate forecast for Wheat due to what's happening in Corn.

Which of the two options is more likely? Jeffrey's got an answer for that too: stick to your price charts, apply what you know, and take the price action one day at a time. One thing will be certain: he'll be there to help you track every development.


When so many questions abound, it can be tough to decide which way to turn. The roadmap Jeffrey brings you in Daily Futures Junctures has the best directions all figured out. Get a better answer. Get the Futures Junctures Service. During FreeWeek, its FREE!

Tags: wheat, Corn, Commodities, Daily Futures Junctures, Jeffrey Kennedy, Commodity

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