CBOT wheat may rise to $5.56

SINGAPORE: CBOT July wheat may rise to $5.56, as it has broken a resistance at $5.43 per bushel.

The resistance is identified as the 50% projection level of an upward wave C from $4.87-3/4. This wave is capable of travelling into the range of $5.56 to $5.98-1/4.

A rising trendline provides a support around $5.37, a break below which could cause a loss to $5.29-3/4. A further drop may be extended to $5.13-3/4.

On the daily chart, wheat seems to have broken a resistance at $5.42-1/4, the 61.8% retracement of the downtrend from $6.19 to $4.18-1/2. The break has opened the way towards $5.71-1/2.

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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. **