SINGAPORE: CBOT July wheat may end its bounce around $5.11-1/4 per bushel and resume its fall.
The bounce is classified as a pullback towards a rising wedge.
The pullback may complete around $5.11-1/4, the 50pc retracement on the uptrend from $4.93-3/4 to $5.29.
The confirmed bearish wedge suggests a further drop below $4.93-3/4.
A break above $5.11-1/4, however, could make this pattern invalid.
A bullish target zone of $5.15-1/2 to $5.20-1/2 will be established then.
On the daily chart, a retracement analysis on the downtrend from $5.64-1/2 reveals a similar resistance at $5.10-1/4, the 23.6pc level, which may prevent a further gain.
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