SINGAPORE: CBOT wheat may fall to $6.24-3/4 per bushel, driven by wave C.
This wave briefly travelled below a support at $6.40 twice. It has a better chance of extending to $6.24-3/4.
A further drop towards $5.76-$6.06 range could be less likely, as the bullish divergence on the hourly MACD suggests an exhaustion of the fall. A decent bounce is due.
A break above $6.55 could lead to a gain to $6.73-3/4.
On the daily chart, the contract may retest a support at $6.32-3/4, a break below which may not trigger an impressive drop, as a rising trendline establishes a support around $6.24.
Daily RSI shows the exhaustion of the downtrend. Most likely, a strong bounce would develop in $6.24 to $6.32-3/4 range.
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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