Image Source: Unsplash

On May 4th we have spotted that WHEAT is finishing a five-wave bearish impulse from the highs with an ending diagonal (wedge) pattern for the 5th wave on a daily chart. Ending diagonal a.k.a. wedge pattern is a strong reversal pattern, indicating that support may not be far away, especially if we consider that a 5th wave is equal in length compared to wave 1. The five-wave decline from the highs is barely first leg A of a deeper, higher degree A-B-C corrective decline.

(Click on image to enlarge)

As you can see today, after almost two months, WHEAT is finally bouncing strongly and sharply on a daily chart, which looks like an impulse into first leg A of a three-wave A-B-C corrective rally within higher degree wave B. So, seems like WHEAT is going to stay in the recovery mode in the second part of 2023, which can send the price back to 900 – 1000 resistance zone before we will see further weakness for a higher degree wave C in 2024.

(Click on image to enlarge)

More By This Author:

Ethereum Completed A-B-C Correction Within Uptrend
AUD/NZD Is Finishing A Corrective Rally
Nike Is Getting Ready For A Bullish Continuation