Durum Wheat Alert

Readers will remember my December 6 Durum Wheat Analysis where I identified my first sell signal:

I will drill down to the Daily chart, preferring to analyze trend alignment across multiple times.

Basically, I want the short-term trend to move in the same direction as the longer-term trend increasing

the probability of the price continuing in the direction of the prevailing trend.

When the trend is not aligned, we recognize the uncertainty of the market and exercise caution.

The short-term trend often but not always forecasts a change in the direction of the longer trend.

The following chart is the 1 CWAD Wheat SW SK Daily average price chart in bushels.

The above chart shows Friday’s closing price below the declining 50 Day Moving Average (DMA).

The 10 DMA is crossing beneath the 20 Day, indicating a downtrend on the shorter timeframes.

If this happens, a declining 10 DMA should be below a declining 20 DMA, which will be below a declining

50 DMA, adding conviction to a trend change thesis.

The purpose of this newsletter is to provide advance notice of trend changes in addition to support and

resistance levels, allowing the reader to anticipate future price action.

Nothing written, expressed, or implied here should be looked at as investment advice or an

admonition to buy, sell, or trade any security or financial instrument. As always, do your own diligence.

The Klarenbach Grain Report presents our technical analysis of the grains markets, including

corn, soybeans, wheat, canola, oats, flax and currencies identifying interest levels and entry and

exit ideas.

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