The wheat trade finally made it's move. The original minimal target of $5.25 was surpassed and actually reached $5.428 near the 200 dma. We could have made more if not stopped out at $5.30 due to Friday's WASDE report volatility.
But is wheat finished? I think wheat is finished for now. Wheat has extreme overbought RSI readings and it is against some major resistance. It is time for wheat to re-set.
If the 3 day RSI becomes oversold, we will begin looking for a swing low to re-enter. This would be at the bottom of a B wave which could actually be the right shoulder of a Head and Shoulders pattern maybe in the $5.20 area. This would be another nice spot for a wheat trade.
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