SINGAPORE: CBOT May wheat may seek a support at $4.71 per bushel, before retesting a resistance at $4.82-1/4, as suggested by an inverted head-and-shoulders pattern and a retracement analysis.
The pattern developed from March 21 and it suggests a target around $4.85, which is yet to be fulfilled. Wheat failed to break a resistance at $4.82-1/4, the 38.2 percent retracement of the uptrend from $4.23-3/4 to $5.18-1/2 and this has triggered a correction.
The retracement analysis also reveals a support at $4.71, the 50 percent level, around which, the correction may end and the uptrend may resume. A break below this level may cause a loss limited to $4.65, the neckline support.
No information in this analysis should be considered as being business, financial or legal advice. 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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