SINGAPORE: CBOT December wheat may hover below a strong resistance at $7.45-1/2 per bushel, or retreat again towards a support at $7.35-1/2.
The resistance is identified as the 61.8% projection level of a wave c from $7.28-1/2. Even though this wave may extend to $7.56-1/4, its failure to overcome this barrier on Tuesday suggests a completion of its first part.
The contract is expected to consolidate within a range of $7.35-1/2 to $7.45 for at least a few days before choosing its next direction.
A break above $7.45-1/2 could open the way towards $7.56-1/4.
On the daily chart, a projection analysis on the uptrend from $6.77 reveals a similar resistance at $7.41-1/4, the 38.2% level.
It appears the attempt to break this resistance will be successful. However, until wheat stands firm above the Tuesday high of $7.45-1/4, the break will not be considered valid.
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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