On the intraday chart of Wheat we are observing a probable three wave rise taking place, with price specifically trading in blue wave b. At the moment we see price trading quite choppy and overlapping, ideally in a triangle correction of a lower degree in sub-wave d). If that is the case, then more sideways price movement may follow, as waves d) and e) are still missing.
Regarding the alternate scenario, blue wave b could already be completed at the 406 mark, from where we can count a five wave rally as red wave i) and current price action may be an unfolding red wave ii).
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A Triangle is a common 5 wave pattern labeled A-B-C-D-E that moves counter-trend and is corrective in nature. Triangles move within two channel lines drawn from waves A to C, and from waves B to D. A Triangle is either contracting or expanding depending on whether the channel lines are converging or expanding. Triangles are overlapping five wave affairs that subdivides into 3-3-3-3-3.
Basic Triangle Correction: