CBOT wheat due for a sharp move

SINGAPORE: CBOT July wheat  is due for a sharp move, as its consolidation within a triangle is ending.

Wave pattern suggests that the contract is riding on a wave C, the third wave of a three-wave cycle from the April 25 low of $4.16. So far this wave has been unfolding within the triangle.

A Fibonacci projection analysis reveals a neutral range of $4.26-3/4 to $4.37-1/2, formed by the 14.6 percent and the 38.2 percent levels. Until wheat leaves this range, its move will be rather tricky.

A break below $4.26-3/4 could cause a loss to $4.20-1/4 while a break above $4.30-3/4 may lead to a gain to $4.35 - a resistance established by the upper trendline of the triangle.