CBOT wheat may fall to $5.45-3/4

• The first support is identified as the 23.6pc projection level of an upward wave C from $5.64-1/2.
• The drop on Monday signals a completion of the bounce from the April 2 low of $5.38-1/4.

SINGAPORE: CBOT May wheat may break a support at $5.52-3/4 per bushel and fall to the next support at $5.45-3/4, as suggested by its wave pattern and a projection analysis.

The first support is identified as the 23.6pc projection level of an upward wave C from $5.64-1/2.

The drop on Monday signals a completion of the bounce from the April 2 low of $5.38-1/4.

The drop closely observed the projection levels of the wave C, which may at least travel to $5.45-3/4.

A retracement analysis on the uptrend from $4.91-3/4 to $5.87 reveals a support at $5.39-1/4, the 50pc level, which triggered the bounce.

Apparently, the bounce ended around $5.64-1/2, the 23.6pc level. Resistance is at $5.57-1/4, a break above which could lead to a gain to $5.64-1/2.