SINGAPORE: CBOT March wheat may test a resistance at $8.14-1/4, a break above which could lead to a gain to $8.29-3/4.
The contract is riding on a wave c, which may either end around $8.14-1/4 or extend to $8.29-1/2.
Its persistence in testing the resistance suggests a possible extension.
This wave could have adopted a complex structure, which explains the confusing move over the past two days.
Key support is at $7.98-3/4, a break below may signal a continuation of the downtrend from $8.74-3/4.
Signals on the daily chart look a bit neutral as wheat is stuck in a narrow range of $7.92 to $8.16-3/4.
A break above $8.16-3/4 could lead to a gain to $8.33-3/4 or $8.56-3/4. A break below $7.92 could open the way towards a zone of $7.52-1/4 to $7.72-1/4.
Readings on the hourly chart suggest an upside bias.
Wheat is more likely to test $8.16-3/4 than to break $7.92.
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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