CBOT wheat's target at $4.16 aborted

SINGAPORE: A bearish target at $4.16 per bushel has been aborted for CBOT Dec. wheat, as it has started a bounce.

The target is identified as the 50 percent Fibonacci projection level of a downward wave c, the third wave of a three-wave cycle from the June 8 high of $5.51-1/2. The bounce from the Aug. 24 low of $4.23-1/4 has made the break below the support at $4.29-1/2 look doubtful.

This bounce could be just a pullback towards $4.29-1/2, however, the target at $4.16 will only be resumed when wheat slides below $4.23-1/4. A break above $4.29-1/2 could lead to a gain to $4.33, the 38.2 percent Fibonacci retracement on the fall from the Aug. 19 high of $4.49-1/4 to $4.23-1/4.