CBOT wheat may fall to $4.23-3/4

SINGAPORE: CBOT May wheat may fall to $4.23-3/4 per bushel, as it has broken a support at $4.40.

The support was provided by the 86.4 percent projection level of a downward wave C from $5.43-1/4. The next support will be at $4.23-3/4, a break below which could cause a loss to $4.06-1/4.

However, the support at $4.23-3/4 may work together with a higher one at $4.27, the March 11 low, to temporarily hold the fall or cause a bounce.

The wave C consists of five smaller waves. The fifth wave may extend to $3.49-3/4, which is pointed by a falling trendline. This level looks too far away to be a realistic target.

A bounce could be limited to $4.40.

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** 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. **