SINGAPORE: CBOT March wheat may end its bounce around a resistance at $4.85 per bushel and then retest a support at $4.75-1/4, as suggested by its wave pattern and a projection analysis.
The resistance and the support are identified as the 123.6 percent and the 150 percent projection levels of a downward wave (C) from $5.31-1/4. This wave is capable of extending to $4.70-3/4.
Three small waves make up the wave (C). The third wave labeled c could be further broken down into the five smaller waves.
The bounce has been driven by the fourth wave labeled 4, which is expected to be totally reversed by a downward wave 5. A decent bounce may not occur until the wave (C) travels to $4.70-3/4.
On the daily chart, the steep fall paused around a support at $4.82-1/4, the Dec. 12, 2017 low. The stabilization is temporary, as the contract is riding on a powerful wave C, which may travel to $4.70-3/4, its 161.8 percent projection level.
* Charts are not available in reports received in email box through "Alert". To get charts, use the news code of TECH/C to retrieve the original reports.
** Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.
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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