Wheat - First Pump, then Dump

In wheat today, there was an impulsive increase of approximately 4%. However, indications suggest that this surge may lack sustainability.

When considering the price in relation to standard deviations, two noteworthy observations emerge: a zone of high liquidity aligns almost precisely with the range of a double standard deviation.

Nevertheless, a substantial amount of sell-side liquidity awaits below, ready to be tapped.

For these reasons, we hold a mid-term bearish outlook on wheat.

The outlined trading idea is presented as a suggestion for a specific trade opportunity, featuring a risk-reward ratio exceeding 2.6:1.