‘Fat Part’ of Wheat’s short has been seen

Wheat has retraced 78.6% of the advance from December 2020.

It’s nearly oversold, it may have a little further, down to the trend line at $6.10 but the ‘fat part’ of the short trade has been had.

On a weekly basis, other technicals suggest similar metrics, coincidences of touching a 50 Week Moving Average, reaching 2.5 standard deviations below its mean and other exhaustions.

Away from technicals, supply fundamentals seem favourable for higher prices again.

July 12, 2021

by Rob Zdravevski

rob@karriasset.com.au

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