SINGAPORE: CBOT July wheat is expected to test a resistance at $7.16-3/4 per bushel, a break above which could lead to a gain to $7.61-1/4. The contract has broken a falling trendline.
The break confirmed a reversal of the downtrend from $9.49-1/2.
Indeed, the bigger downtrend from the May 17, 2022 high of $11.61 may have reversed, as both a small wave c from $8.10 and a bigger wave C from $9.49-1/2 have completed.
Generally, market may pull back towards the trendline, after breaking it.
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The pullback could occur around $7.16-3/4, as the bullish sentiment still looks strong. On the continuous chart, either the downtrend from $9.49-3/4 or the bigger trend from $12.84 has reversed, as wheat has broken a falling trendline.
A retracement analysis suggests a target zone of $7.61-1/2 to $8.05-3/4.
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