CBOT wheat may bounce to $4.23-3/4

SINGAPORE: CBOT Sept. wheat may bounce to $4.23-3/4 per bushel, as it has found a support at $4.06-1/2.

The support is provided by the 38.2 percent Fibonacci projection level of a downward wave C, the third wave of a three-wave cycle from the June 8 high of $5.33-3/4.

The bounce caused by the support may extend to $4.23-3/4, the 23.6 percent level. The wave C could then resume towards $4.06-1/2, as it is capable of eventually travelling to $3.78-3/4, the 61.8 percent level.