CBOT wheat may stabilise around $4.24-1/2 before rising

SINGAPORE: CBOT Sept. wheat may stabilise around a support at $4.24-1/2 per bushel, before resuming its rally towards a resistance at $4.29-1/2, as suggested by its wave pattern and a Fibonacci retracement analysis.

The bounce from the July 5 low of $4.15-3/4 is against the downtrend from the June 8 high of $5.33-3/4. It consists of three waves, with the third wave labeled C having just started.

A Fibonacci retracement analysis on the rise from $4.15-3/4 to the July 13 high of $4.51-3/4 reveals a resistance at $4.29-1/2, the 61.8 percent level, and the support at $4.24, the 76.4 percent level.