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CBOT wheat may test resistance zone of $5.19-3/4 to $5.20-3/4
- The contract seems to be consolidating within a wedge, which consists of five small waves and is regarded as a bearish continuation pattern.
- Support is at $5.12-3/4, the 38.2pc projection level of an uptrend from $5.01-1/2, a break below which could
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SINGAPORE: CBOT July wheat may test a resistance zone of $5.19-3/4 to $5.20-3/4 per bushel, a break above which could open the way towards $5.29.
The contract seems to be consolidating within a wedge, which consists of five small waves and is regarded as a bearish continuation pattern.
A break above the resistance zone will confirm the wedge as a bullish pattern, which indicates a target around $5.40.
A realistic target will be $5.29, the 50pc retracement of the downtrend from $5.64-1/2 to $4.93-3/4.
A failure to break the zone may trigger a quick drop towards $5.08-1/4.
Support is at $5.12-3/4, the 38.2pc projection level of an uptrend from $5.01-1/2, a break below which could cause a fall to $5.08-1/4.
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