SINGAPORE: CBOT December wheat may consolidate in a range of $4.75-1/4 to $4.80-1/4 per bushel for one more day before rising towards $4.88-1/4.
The range is formed by 123.6% and the 114.6% projection levels of a downtrend from $5.43. It serves as a resistance zone, which is strengthened by a resistance at $4.77-1/2, the 23.6% retracement on the downtrend from $5.65-3/4 to $4.50-1/2.
A drop below $4.75-1/4 could signal a failure to break above the resistance zone. A bearish target at $4.67-1/4 will be established then.
A break above $4.80-1/4 will be confirmed when wheat rises above the Sept. 10 high of $4.83-1/2. The rise could be extended into the range of $4.88-1/4 to $4.94-1/2.
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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. **