Grains have had dramatic uptrends for most of the summer. At A on this chart, we were looking at a possible long entry—had prices quickly recovered back above the bottom of the range, this would have been a classic Wyckoff spring, and a strong signal to buy for at least a pop toward to the top of the range. In this case, a long could have had significant upside potential should the top of the range have broken and the uptrend continued. However, flexibility is essential; in this case, the pattern did not play out as there was no recovery above the bottom of the range. The small rally attempt actually marked a small bear flag, and the most recent breakdown on this chart probably marks the end of the summer’s trends in Grains.
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