CBOT wheat may fall into $6.89-1/2 to $6.98 range

SINGAPORE: CBOT May wheat may break a support of $7.06-1/2 per bushel and fall into a range of $6.89-1/2 to $6.98. The contract has fallen below an expanding wedge, which has a slim chance to extend.

It has been more or less confirmed as a bearish continuation pattern.

Even though it is too aggressive to target a level suggested by this wedge, the current wave 3 could easily travel to $6.89-1/2.

Resistance is at $7.16-3/4, a break above could lead to a gain into $7.25-3/4 to $7.34-1/4 range. On the daily chart, the contract is riding on a wave C from $9.66-3/4.

EU wheat futures close to 1-month low

This wave may travel to $6.75-1/2 very soon. It may only be disrupted by a pullback towards $7.31-1/4, which is yet to appear.