CBOT wheat may test resistance at $5.19-3/4

• This trend may be totally reversed, based on the strength of the current rally.
• The contract has broken a falling trendline and completed the pullback, it is now expected to rise more.

SINGAPORE: CBOT July wheat may test a resistance at $5.19-3/4 per bushel, with a good chance of breaking above this level and rising towards the range of $5.23-1/4 to $5.28.

The resistance is identified as the 76.4pc retracement of the downtrend from $5.28 to $4.93-3/4.

This trend may be totally reversed, based on the strength of the current rally.

The contract has broken a falling trendline and completed the pullback, it is now expected to rise more.

Support is at $5.14-3/4, a break below which could cause a fall limited to $5.10-3/4.

On the daily chart, wheat has surged above a falling channel and a resistance at $5.15, the 100pc projection level of a downward wave C from $5.61-1/2.

It is expected to keep rising towards the range of $5.21-1/4 to $5.25-3/4, which overlaps the range of $5.23-1/4 to $5.28.