Pop Goes the Wheat Bubble
A weekly chart of the nearby wheat futures shows an almost perfect example of the Fibonacci price pulse developed by Tony Plummer.
An alpha-beta base formed between November of 2009 and May of this year would call for a theoretical target for an impulsive move at the 2.618 Fibonacci level, a little over 8.39 a bushel.
The high on Friday was 8.41.
A weekly chart from Friday:
Since then the sell off has been quite dramatic, approaching the next level down in this pattern--the 1.618 level--in overnight trading. The low today was around 6.84. The 1.618 level is around 6.81. This seems to be holding as an initial support level.