SINGAPORE: CBOT July wheat may retest a support at $4.93-1/4 per bushel, as suggested by its wave pattern and a projection analysis.
The support is identified as the 50% projection level of a downward wave c from $5.14. This wave is capable of travelling to $4.72-3/4.
The current wave count has to be reviewed, should wheat unexpectedly climb above $5.08-1/2. Such a move will signal an extension of the uptrend from the June 6 low of $4.87-3/4 towards $5.21-1/4, the 7% retracement on the uptrend from $4.18-1/2 to $5.29.
On the daily chart, wheat may retest a support at $4.95, the 38.2% retracement on the fall from $6.19 to $4.18-1/2. A break could open the way towards $4.65-3/4.
* Charts are not available in reports received in email box through "Alert". To get charts, use the news code of 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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