SINGAPORE: CBOT wheat may retest a resistance at $9.43-1/4, with a good chance of breaking above this level and rising to $9.57-1/2 per bushel.
The contract is presumed to be riding on a wave C from $8.54-1/4. This wave has briefly pierced above its 86.4% projection level of $9.43-1/4.
Chances are it may peak around $9.57-1/2. Alternately, the wave C could be labelled as a wave (5), which may also end around $9.57-1/2, as pointed by a rising trendline.
A deep correction could be near, which is expected to be as strong as the one from the Sept. 22 high of $9.22-1/2. A break below $9.18 may trigger a drop into $8.93-1/2 to $9.05-3/4 range.
On the daily chart, wheat faces a strong resistance at $9.49.
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Strengthening this resistance is another one at $9.54, the July 11 high.
It could be extremely difficult for the contract to overcome this barrier and rise towards $10.12-1/2. Most likely, a temporary top would form over the next one or two days around this level.
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