CBOT wheat biased to fall to $6.05 a bushel

SINGAPORE: CBOT Dec. wheat is biased to fall to $6.05 per bushel, as a medium-term downtrend that started from the Aug. 29 high of $8.05-1/2 could have resumed.

The fall from $6.65-1/4 to $6.05 has adopted a standard five-wave mode, with the following three-wave rebound from $6.05 stopping at about $6.35, the 50 percent Fibonacci retracement level.

A break below $6.05 will confirm the progress of a downward wave (3), towards $5.75, the 100 percent Fibonacci projection level, based on the length of the wave (1) fall from $6.65-1/4 to $6.05 and the wave (2) peak of $6.35-1/4.