Wednesday, July 28, 2010

Wheat Making Highs

The Wheat market has been in a strong rally. Prices formed a strong uptrend (a), then broke through key resistance (b) before consolidating in a triangle pattern (c). Today, prices have broken through resistance again (d). The EMA picture is very bullish (e) -- the shorter EMAs are above the longer EMAs, all are moving higher and prices are above the EMAs. However, momentum is slowing (f).

The primary reason is a drought across Russia.