SINGAPORE: CBOT first month wheat faces a support at $5.68-3/4 per bushel, and only a break below this level could trigger a further drop to $5.21 over the next three months.
The support is the 61.8 percent Fibonacci projection level of a downward wave "C", based on the length of the wave "A" and the peak of the wave "B" at $7.71-1/2.
Enforcing the support is another similar support at $5.65-1/4, a low touched on July 1 and the wave "A" trough, resulting in a consolidation above $5.68-3/4.
The consolidation could also be interpreted as a pullback towards an ascending trendline passing through the wave "A" trough, with a range of $5.68-3/4 to $6.30.
A rise above $6.30 will extend to $6.60.
No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.
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