SINGAPORE: CBOT March wheat could have started a correction as both its wave pattern and the hourly RSI indicate it had been overbought.
The RSI indicator fell sharply from a peak of 76.713 touched on Dec. 28, suggesting the rally exhausted at $6.56 a bushel.
The surge from around $6.20 to a high at $6.56 characterized a wave "5" which is typically sharp and brief. So long as wheat stays below $6.56, the assumption of a five-wave cycle completion will be valid.
A rise above $6.56 will extend to $6.65.
No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.
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