Fun with Fibonacci
Fibonacci retracement levels are depicted by taking high and low points on a chart and marking the key Fibonacci ratios of 23.6%, 38.2% and 61.8% horizontally to produce a grid. These horizontal lines are used to identify possible price reversal points. F1, F2, and F3
Large Green Lentils #2
Support: $18.50 Resistance $30.00 F1 = 25.58; F2 = 24.22; F3 = 22.86
Current markets are struggling to break through F1, F2 has provided support for new crop. A breakthrough 22.50 will signal a new top resistance point in the market setting up for sub 20 grower values.
Green Peas #2
Support = $7.48 Resistance = $9.75 F1 = $8.88; F2 = $8.61; F3 = $8.35
The long term trend shows Green peas trading in a relatively tight range between $8.50 and $9.00/bu. The calcuation suggests a price of $8.25 will signal future higher prices. A break below $8.25 will set up prices around $7.50/bu
Support = 18.50 Resistance = $25 F1 = $22.69 F2 = $21.98 F3= $21.26
Very little canary has moved below $21 for several years with the sweet spot to fill limited demand around $22 and farmer targets around $24. Fibonacci calculation suggest it will remain difficult to go below $21.
Red Lentils #2
Support = $20 Resistance = $14 F1 = $17.67; F2 = $16.96; F3 = $16.26
Reds are moving off the charts in a bad way for farmers due to duties from India not allowing market forces to do their work and absorb excess supplies at lower prices. We have not broken 16 in a decade. Even with an estimated resistance value of $14, the calculation suggests that we are at a bottom of the market and should stay here for a long time.