The price of wheat, a red-hot commodity just three months ago, has been in a persistent decline. In fact, prices are down some 40% off the all-time high that occurred in mid-March – a big move.
What’s behind the decline? Mainstream commodity experts insist mostly on fears of reduction in global demand because of the slowing economic growth worldwide. (Side note: If this were true, shouldn't oil prices also be falling, and not rising? Hmm.)
From an Elliott wave perspective, the reasons for the dramatic fall in price are quite different. But that's not what this article is about. Elliott Wave International's Daily Futures Junctures exists to bring you opportunities in commodity markets, not trend autopsies.
And a new opportunity in wheat could be staring us right in the face.
5 days a week, EWI's Daily Futures Junctures brings you one or more "best opportunity" in commodities' futures. Today's "best is Wheat (June 2). What will be tomorrow's "best"? Find out risk-free.
Despite all the "fears of the global economic slowdown," the pace of the decline in wheat has slowed recently. (Maybe there is hope for global economies after all, eh?) What's more, as Daily Futures Junctures longtime editor Jeffrey Kennedy points out in tonight's DFJ (June 2), "Wheat's decline had traced out a Diagonal Triangle in recent days."
Diagonal Triangles are one of 13 known Elliott wave patterns "comprised of five waves (i.e., 1-2-3-4-5) that… can only occur in the fifth-wave position of impulse waves, or the wave C position of A-B-C formations." Here's an idealized diagram, in bull and bear markets:
And here's the actual chart of Wheat, as presented in tonight's DFJ (June 2; some Elliott wave labels have been erased for this publication):
Diagonal Triangles are Jeffrey Kennedy's "favorite Elliot wave patterns – above all others." Why? Because "they regularly introduce swift, sizable moves…beyond the origin of the pattern. And more often than not, this is accomplished in 1/2 -1/3 of the time it takes the pattern to form."
Clearly, Wheat is on the verge of a highly-probable, "swift and sizable," move. Learn what direction prices are likely to go and exactly where Jeffrey's price targets are right now.
The June 2 Daily Futures Junctures also gives you a free 4-minute video where editor Jeffrey Kennedy explains his Wheat forecast in greater detail. Watch it now, risk-free.