SINGAPORE: CBOT May wheat may retest a resistance at $5.17-1/4 per bushel, with a good chance of breaking above this level and rising more to the next resistance at $5.22.
These resistances are identified respectively as the 114.6 percent and the 123.6 percent projection levels of an upward wave C from $4.57.
Experience shows that a wave C seldom ends around its 114.6 percent projection level. Most likely, it will end in the range formed by the 138.2 percent and the 161.8 percent levels.
This characteristic of the wave C suggests that wheat may extend its gain into the range of $5.29-3/4 to $5.42-1/4. Support is at $5.09-3/4, a break below which could cause a loss to $5.02-1/2.
No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.
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