SINGAPORE: CBOT Sept. wheat seems to have stabilized around a support at $4.16-3/4 per bushel and is expected to retest a resistance at $4.23-1/4.
The support and the resistance are identified respectively by the 38.2 percent and the 61.8 percent Fibonacci projection levels of an upward wave C, the third wave of a three-wave cycle from the Aug. 2 low of $3.99-1/4.
This wave is capable of travelling to $4.34-1/4, the 100 percent level. The 86.4 percent level at $4.30-1/4 has temporarily blocked the way and caused a correction to the 38.2 percent level at $4.16-3/4.
A break above $4.23-1/4 could confirm the continuation of the wave C towards $4.27-1/2, the 76.4 percent level, while a break below $4.16-3/4 could cause a loss to the 23.6 percent level at $4.12-1/2.
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