SINGAPORE: CBOT July wheat may rise into a range of $4.45 to $4.46-1/2 per bushel, as suggested by its wave pattern and a Fibonacci ratio analysis.
The contract has cleared a resistance at $4.41-3/4, the 61.8 percent projection level of an upward wave c from $4.28. This wave has a better chance of extending to $4.50-1/4.
However, this target could only be confirmed when a higher resistance at $4.46-1/2 is broken. This resistance is identified as the 38.2 percent retracement on the downtrend from $4.79-3/4 to $4.26.
The preceding wave a ended around $4.46-1/2. The current wave c may also complete around this level, if it is weaker than expected.
A break below $4.38-1/2 could cause a loss to $4.33-3/4.
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** 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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