SINGAPORE: CBOT December wheat may retest a resistance at $7.66-3/4 per bushel, a break above could lead to a gain at $7.73-1/4.
The uptrend remains intact, which is riding on a wave c that has briefly pierced above $7.66-3/4. This wave has a better chance of extending to $7.73-1/4.
The consolidation triggered by the resistance has been shaped into a small triangle, which may turn out to be a bullish continuation pattern.
A break below $7.56-1/4 could cause a fall into the range of $7.45-1/2 to $7.49-1/2. On the daily chart, a doji formed on Monday around a resistance at $7.61.
This is not necessarily a bearish reversal pattern. It could signal a temporary balance between bullish and bearish forces. Only a black candlestick on Tuesday could add some bearish colour to this doji.
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