Wheat Future Chart Shows Head And Shoulders Top

Here is the follow up of our wheat future chart and how to project a target to take profits. Notice that on our current wheat chart price is rallying trying to get back to the neckline before reaching the head and should target.

An interesting fact is that price gapped down through the neckline on Dec 23, 2003 and now price is attempting to get back to the gap and the neckline.

The question every trader must ask...is this. Is the down move over or can we expect the forcasting of 'measuring from the head to the neckline' to give us the correct projected target.

If the move is not over...where is a low risk entry point to go short so that one can particapate in the move to the target.... I would think most knowledgeable traders would try to get short if/when price rallies to the neckline.

What if price rallies above the neckline? Occasionally price will rally above and beyond the neckline. Should that turn out to be the case in our Wheat Future Chart, the next area of resistance would be in the area of the right shoulder.

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