SINGAPORE: CBOT September wheat may bounce into a range of $5.01-3/4 to $5.08-3/4 per bushel, following its failure to break a support at $4.94-3/4.
The support is provided by the 61.8% projection level of a wave c. It triggered a pullback towards a rising trendline. Most likely, this pullback would end below $5.08-3/4.
A break below $4.94-3/4 could signal the continuation of the wave c towards $4.72-1/4.
On the daily chart, a head-and-shoulders has been confirmed, which indicates a target around $4.40.
Wheat seems to be pulling back towards the neckline of the pattern. A rise above the resistance at $5.02-1/2, however, could make this pattern invalid.
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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. **
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