CBOT wheat may bounce more to $4.36-1/2

SINGAPORE: CBOT September wheat may bounce more to $4.36-1/2 per bushel, as it has broken a resistance at $4.25.

The resistance was provided by the 14.6 percent Fibonacci retracement on the fall from the June 8 high of $5.33-3/4 to the July 20 low of $4.06-1/2. The next resistance will be at $4.36-1/2, the 23.6 percent level.

Instead of surging further, wheat may pull back towards a trendline descending from $5.33-3/4 when it reaches $4.36-1/2. A break below $4.25, now a support, could cause a loss to $4.15-1/4, the 7 percent level.