Wheat in October climbed more than 13%.
For the past few days we see the price making a pullback and stopping at the 50MA where buyers jump in again.
There are two scenarios that I see right now:
1) we have a descending triangle in-the-forming with potential break lower if bears win or
2) we are in the “digestion” period of the recently formed higher prices
In either case something’s cooking and those interested in Wheat should stay vigilant and prepare for the next move.
The dropping ATR value might be an indication to support the above theory as major events usually happen when the value of ATR remains low.
The strong uptrend for the time being and the respect of the 50MA favour in my eyes the second scenario, but you never know with markets.
Good luck traders.
Note: I'm no trading expert nor have the ambition to become one! The above is just an idea that I share with the intention of attracting comments and perhaps become a better trader.
For the past few days we see the price making a pullback and stopping at the 50MA where buyers jump in again.
There are two scenarios that I see right now:
1) we have a descending triangle in-the-forming with potential break lower if bears win or
2) we are in the “digestion” period of the recently formed higher prices
In either case something’s cooking and those interested in Wheat should stay vigilant and prepare for the next move.
The dropping ATR value might be an indication to support the above theory as major events usually happen when the value of ATR remains low.
The strong uptrend for the time being and the respect of the 50MA favour in my eyes the second scenario, but you never know with markets.
Good luck traders.
Note: I'm no trading expert nor have the ambition to become one! The above is just an idea that I share with the intention of attracting comments and perhaps become a better trader.
