Great day in the wheat fields. We created a bigger candle than yesterday on higher volume with a close very close to the high of the day.
When looking at the chart, please focus on the green annotations and the yellow Fibonacci range on the right side of the chart.
Stochastics are not yet overbought, so no pressure there. We gapped up on the open but filled the gap in, so no pressure to fill the gap.
If we exceed the previous swing high at 807, then we may attract break out and momentum traders, which will add a tail wind to our long position.
I thought about moving our Stop to break even but it would be too close to the 8ema, and our original Stop. I'd hate to have a temporary pull back overnight, hit break even, then take off to the upside. Its happened to me plenty of times in the past. So I didn't move the Stop yet.
I'm concerned about a possible rejection off the previous swing high at 807, which could create a Double Top. But, judging from the strength we're seeing, I think the odds are that we'll breach the 807 level with a mild to no reaction, then continue for a higher close on the day tomorrow.
There's a monthly report named "Wheat Outlook: November 2021" due out this Friday 11/12/21 at 15:00 ET. I don't have any intelligence on how likely this report is to move the market, so I'm thinking I want to exit this position by Friday's 14:20 close. This would avoid the risk of the report as well as weekend risk.
Bottom line; we're looking good at the moment.
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