SINGAPORE: CBOT wheat may break a support at $8.42-3/4 per bushel, and fall into $8.01-3/4 to $8.24 range.
The drop on Monday looks deep enough to confirm a completion of the bounce from the July 6 low of $7.85-1/4 and the continuation of a downward wave C from $11.07-3/4.
This wave is expected to extend into the range of $7.07-1/4 to $7.65-1/2.
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A retracement analysis on the rise from $7.85-1/4 reveals a resistance at $8.81, which forms together with the one at $8.93-3/4 a resistance zone to stop any bounce from the current level.
On the daily chart, a dark cloud cover forming between July 8 and Monday confirmed a completion of the bounce triggered by the support at $7.92.
The bounce was driven by a wave d, which will be reversed by the current wave e.
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