SINGAPORE: CBOT March wheat may test resistance at $8.50 a bushel, a break above which could lead to a gain into $8.57-1/4 to $8.64-1/2 range.
The contract is riding on a wave C from $7.64-3/4. This wave has travelled far above its 100% projection level of $8.26-1/2.
It has a better chance of extending into $8.50 to $8.64-1/2 range.
The strong momentum accumulated on Tuesday guarantees a further gain on Wednesday.
It won't be a surprise if wheat repeats another six percent gain.
A break below $8.35-1/2 may cause a shallow fall into $8.26-1/2 to $8.30-3/4 range. On the daily chart, wheat broke a resistance at $8.35-1/2.
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The break not only opened the way towards $8.56 but also confirmed a double-bottom which suggests a target of $9.27.
On the weekly continuous chart, wheat is about to break a key resistance at $8.47 and rise towards $9.62.
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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