Below are three charts. In technical analysis, wheat has a possible Double Top in place. There are no Triple Tops in technical analysis. With a major crop report out on Thursday, any retest of the old highs at 437.5-437.75 is a buying opportunity.
I am long March Wheat looking for much higher prices. I have already begun to roll out of March Wheat into July Wheat. In other words I am selling March Wheat to liquidate my long position and buying July Wheat to re-establish that long position.
Also included below are a couple of Ag stocks, Mosaic and Potash. Both stocks have Outside Reversal Higher formations in place today. This is a very bullish indicator. It is quite obvious that the stock traders are getting long the Ag stocks ahead of the crop report on Thursday.
Lastly…Potash pays a 6% dividend. If we get the sort of bullish 2017 grain move I am betting my money on, a stock like Potash would be a good investment.
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