CBOT wheat to rise to $4.02-1/2

SINGAPORE: CBOT Dec. wheat is expected to rise to $4.02-1/2 per bushel, as it has cleared a resistance at $3.95.

The resistance was at 114.6 percent Fibonacci projection level of a downward wave c, the third of a three-wave cycle from the July 13 high of $4.73-3/4.

The next resistance will be at $4.02-1/2, the 61.8 percent Fibonacci projection level of a bigger wave C, which is the third of a three-wave cycle from the June 8 high of $5.51-1/2. The bullish divergence on hourly RSI suggests wheat has become technically strong and hence may gain more.

A break below $3.95, now a support, may cause a loss to $3.90.