This article is brought to you by:
CONSENSUS

FOURTH TIME, INC.
P.O. Box 17468, Milwaukee, Wisconsin
414-351-1992

(March, 2002) WHEAT: The seven-month cycle stopped the previous bull trend dead in its tracks during January. Worse, the market rejected a multi-year breakout and it will take a long time to come back from that kind of pattern. This type of action will support either lower prices, or an extended sideways pattern. Near term (say, the next few weeks) the odds favor a bounce. Mainly, this is because the current down stroke has carried nearby wheat half-way back to last summer's low. That support comes in at 2.77 and as luck would have it, the 200-day average is moping along at the same price. A reasonable assumption is for the May contract to recover half the distance lost and that gives it a target of 2.95. Somewhere near that price range we will look for reasons to sell again.

 

Dave Norton

Hosted by:
CONSENSUS, INC. AND INVESTORS CO-OP
P.O. Box 520526
Independence, MO 64052-0526
816-373-3700
Fax: 816-373-3701
editor@consensus-inc.com