SINGAPORE: CBOT September wheat may break a support at $4.86 per bushel and fall to $4.72-1/4, driven by a wave c.
The support is provided by the 76.4% projection level of the wave c from $5.31-1/2. This wave is capable of travelling to $4.72-1/4.
Wheat has briefly pierced below $4.86. It has a better chance of overcoming this barrier and falling further. A bounce from the current level may be limited to $4.94-3/4.
On the daily chart, a head-and-shoulders has been confirmed, indicating a target around $4.40. It is more realistic to target$4.73-1/2, the 23.6% retracement of the downtrend from $6.24-1/4 to $4.27-1/4.
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** Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.
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