CBOT wheat to retrace to $5.19

SINGAPORE: CBOT first month wheat is expected to retrace to a support at $5.19 per bushel, as it failed to break a resistance at $5.23-1/4.

The support and the resistance are identified as the 38.2 percent and the 50 percent projection levels, respectively, of an upward wave C from $5.05-1/4.

Working together with the resistance is another similar established by a short falling trendline. Even if the wave C looks too short to have completed, it may only extend after the current correction.

A break below $5.19 could cause a loss to $5.13-1/2, while a break above the trendline could lead to a gain to $5.32-3/4.