Wheat continues its very sharp rally off of the break out of the wedge pattern we discussed last week.
Today saw a huge move, enough so to warrant taking half the long position off the table and letting the second half ride. This type of trade is the absolute best as it offers a no risk proposition.
Wheat looks a bit over extended here and may be in need of a pullback before it can continue the current rally phase. If you went long on the buy signal, then look to exit half your position and move the stop loss up to break even on the last half. This will guarantee you a very handsome profit even if wheat works its way lower to your entry point.
I am looking for a pullback to the 8-8.50 level before we have another leg higher so keep these numbers in mind going forward.
Don't forget also that Wheat is not only producing nice profits for us but it also managed to tell us to exit our short positions in soybeans at break even so we owe quite a bit of gratitude to the grain.