CBOT wheat may fall to $5.07-1/4

SINGAPORE: CBOT first month wheat may break a support at $5.11 per bushel and fall towards the next support at $5.07-1/4, driven by a wave C.

This is the third wave of a presumed three-wave cycle from $5.31-1/4. It may complete around either $5.11 or $5.01-1/4. A wedge suggests a fall to its lower trendline around $5.09.

Once wheat falls to this level, it is likely to drop more towards $5.01-1/4. However, this target will only be confirmed when the contract breaks $5.07-1/4.

Resistance is at $5.14-1/4, a break above which could lead to a gain to $5.17-1/4.