The long-shadowed shooting star is the first signal that the uptrend from $4.90 has completed. This signal looks more convincing when supplemented by the wave structure of the trend and a projection analysis.
The trend has been driven by a wave C, the third wave of a three-wave cycle from $4.68-1/4. This wave suddenly lost its strong bullish momentum after briefly piercing above a key resistance at $6.09-3/4, the 100 percent projection level.
This drastic change represents a swap of market sentiment.
It is not very clear if wheat would edge up into a range of $5.95 to $6.04-1/4 before falling towards $5.66. Strategically, this target will be confirmed when it breaks $5.83-3/4.
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