CBOT wheat may rise to $4.00-1/2

SINGAPORE: CBOT December wheat may rise to $4.00-1/2 per bushel, as it may temporarily end its drop around a support at $3.96-1/2.

The support is provided by the 7 percent Fibonacci projection level of an upward wave c, the third wave of a three-wave cycle from the Aug. 31 low of $3.86-3/4. Strengthening the support is a similar one established by a trendline rising from $3.86-3/4.

The wave c seems to be incomplete, as it is capable of travelling to $4.09-3/4. A break below $3.96-1/2 could cause a loss to $3.95.