SINGAPORE: CBOT July wheat may retest a support at $4.86-3/4 per bushel, as suggested by its wave pattern and a retracement analysis.
The support is identified as the 38.1% retracement on the uptrend from $4.18-1/2 to $5.29. It caused a bounce which has ended around a resistance at $5.12-3/4.
Wheat has cleared a higher support at $5.02-3/4. It is heading towards $4.86-3/4. Wave pattern shows that it is riding on a wave c, the third wave of a three-wave cycle from $5.29.
A projection analysis suggests that this wave could travel to $4.72-3/4, its 100% level. A bounce from the current level may be limited to $5.02-3/4.
On the daily chart, wheat is retesting a support at $4.95, the 38.2% retracement on the fall from $6.19 to $4.18-1/2. A break could open the way towards $4.65-3/4.
* Charts are not available in reports received in email box through "Alert". To get charts, use the news code of 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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