Wheat: double-top then back to fundamentals or La Nina concerns?
Wheat has completed five Elliot waves up and with bearish fundamentals on the ground remaining, an ABC correction may now be in order.
If the rally has in fact exhausted itself, then a double-top which has often followed wheat rallies would not be unusual here. The conditions for another bounce off shorter time frame averages to yesterday's highs to form that double-top appear to be in play.
However, if La Nina worries persist, then the market may stabilize as it meets the rising 20 day MA and new highs could be in play. The Golden Cross about to be formed by the daily 50MA crossing up over the 200MA would give these climate/weather concerns form.
Not financial advice and you trade at your own risk.
If the rally has in fact exhausted itself, then a double-top which has often followed wheat rallies would not be unusual here. The conditions for another bounce off shorter time frame averages to yesterday's highs to form that double-top appear to be in play.
However, if La Nina worries persist, then the market may stabilize as it meets the rising 20 day MA and new highs could be in play. The Golden Cross about to be formed by the daily 50MA crossing up over the 200MA would give these climate/weather concerns form.
Not financial advice and you trade at your own risk.