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SINGAPORE: CBOT July wheat may climb to $4.29-3/4 per bushel, as it has pierced above a resistance at $4.26-1/4.

The resistance is provided by the 14.6 percent Fibonacci retracement of the downtrend from the May 2 high of $4.61-1/2 to the May 16 low of $4.20-1/4. The next resistance will be at $4.29-3/4.

The bullish divergence on the hourly MACD suggests the bounce from $4.20-1/4 may extend. However, it is not very clear if the bounce could develop into a short-term uptrend.

Support is at $4.23, a break below which could signal the continuation of the preceding downtrend.

Copyright Reuters, 2017

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