CBOT wheat may fall to $5.11

SINGAPORE: CBOT December wheat may break a support at $5.14-1/4 per bushel and fall towards the next support at $5.11, as it failed to break a resistance at $5.17-1/4.

The resistance is provided by the 38.2 percent projection level of a downward wave C from $5.27-1/4. The failure of the contract to go above $5.17-1/4 signals the drop from the Oct. 9 high of $5.20-1/2 may extend.

Indeed, the wave C looks incomplete, as it is supposed to travel to $5.07-1/4, around the lower trendline of a rising wedge.

A sudden rise above $5.17-1/4 could completely alter the technical readings, as this rise could be extended into the range of $5.21 to $5.25-1/4.