Thursday, June 10, 2021

Wheat Might Make Some Bread - Update 7



I wanted to dump this lazy, depressing, Eeyore of a commodity all day.




Corn has had 2 green happy up days while Wheat has dipped threateningly in the morning then climbs to barely close on or just over the 8ema. Today we formed a Doji candle, which represents indecision.

Since we closed over the 8ema, its not appropriate to exit this trade. So we held the position, but I have repeating visions of the bottom falling out of it. 

However, the probabilities of a Bull Flag is to break out of it to the upside. And inflation and Corn support that outcome. But Soybeans looks Bearish. In fact, if I was long Soybeans, I would have closed out of it today. 

Mixed charts among the grains creates doubt in a grain trade. But you have to trade the instrument you're trading. I wouldn't close Wheat because Soybeans look bearish for example, although I may regret not doing so over the next few trading days.

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