Fibonacci Patterns on Large Time Frame December Wheat

The focus of this post is the December 2013 Wheat contract, 120 minute bars, roughly four months of price is contained in the chart (brown line for 200MA, magenta line for 50MA, no 8MA since this timeframe is too large to trade, but perfect for scout set ups).

Click to enlarge

Notice that the high price set in mid October was defined by the preceding XY swing across the 50MA. The high measured to a 161.8 retrace of the XY leg which is a "Head & Shoulders" measurement. The B and C swings are labeled. Price is now in the area that the H&S pattern was expected to achieve (161.8-224 extension of XY leg).

On the movement down, I highlighted several "obvious" areas where Fibonacci traders stepped in, either to end their short, or to attempt to turn price up. Specifically at the 50% retrace at 673 3/8 and the 61.8% retrace at 664 3/8. When price behaves this way at these "exact" prices, it is sufficient for me to believe that Fibonacci ratios are used by Wheat traders too.

This chart further interests me because the 224 extension of XY aligns perfectly with the 78.6% retrace of the full pull at 651 6/8. Confluences such as these always make me wonder ...

Should this confluence be sufficient to turn price, the last trade of this contract must be kept in mind as it is the last trade is the business day prior to the 15th of December, so there is not much time left. Traders will roll to a later contract, the March WH14 or later, so look for potential continuation there.