SINGAPORE: CBOT May wheat may break a support at $4.73-3/4 per bushel and fall towards the next support at $4.67-3/4, as it may have completed a bounce from the April 16 low of $4.61-1/2.
The completion is indicated by the failure of the contract to break above a falling trendline. A retracement analysis on the uptrend from $4.41-1/2 to $4.94 also reveals that the bounce was unable to extend to $4.81-1/2, the 23.6 percent level.
At least, wheat may retrace to $4.73-3/4 to seek support. It will face resistance at $4.81-1/2 if it breaks the trendline.
A break above $4.81-1/2 will confirm the extension of the uptrend from $4.41-1/2 towards $4.94.
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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