CBOT wheat to retest support at $4.21-1/2

SINGAPORE: CBOT July wheat is expected to retest a support at $4.21-1/2 per bushel, driven by a wave C.

This is the third wave of a three-wave cycle from the April 25 low of $4.16. It may at least travel to $4.16-3/4, its 61.8 percent Fibonacci projection level. A triangle developing from the May 16 low of $4.20-1/4 has been confirmed, suggesting the same target as well. A further bounce may be limited to $4.32-1/2.

A study on the continuous chart suggests wheat

may drop towards $3.85 over the next two weeks, as suggested by its wave pattern and a Fibonacci projection analysis.