SINGAPORE: CBOT May wheat may fall further into a range of $4.28-1/4 to $4.33 per bushel, as suggested by a projection analysis and a falling trendline.
The contract is riding on a wave (5), the final wave of a bigger wave C from $5.34-3/4. This wave has travelled below its 261.8 percent projection level at $4.41-3/4. It may extend its loss to $4.28-1/4, which is pointed by the falling trendline.
On the daily chart, another projection analysis reveals a lower target at $4.23-3/4, the 100 percent projection level of a downward wave C from $5.44-1/4.
Even though it is generally difficult to figure out the bottom of a wave five, a bold speculation would be the current downtrend may end in a range of $4.23-3/4 to $4.28-1/4.
* Charts are not available in reports received in email box through "Alert". To get charts, use the news code of TECH/C to retrieve the original reports.
** Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.
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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