We’ve been following Wheat futures since a new 12-month high of 744 was reached on May 6th (see previous post: New 12 Month High in Wheat Futures).
We waited for a 123 top formation, but instead prices tumbled almost straight down over the past 11 trading sessions (see Daily Wheat chart below). At the time of this post, July Wheat futures are around 656 and the 50% Retracement Level is at 650.63, so that doesn’t leave much room for profit given that we look to make the difference between the #2 point and the 50% Retracement. Since there was no discernible 123 top to signal a change in market direction, we missed the ride down and and we don’t see an opportunity to trade this market at this time. Stay tuned.