CBOT wheat may rise to $5.29

• The correction failed to extend below a key support at $5.18-1/2, the 61.8pc retracement of the uptrend from $5.01-3/4 to $5.46.
• The failure, along with the three-wave structure of the correction, indicates a completion of the drop.

SINGAPORE: CBOT March wheat may break a resistance at $5.23-3/4 per bushel and rise to $5.29, as it could have completed a correction from the Nov. 29 high of $5.46.

The correction failed to extend below a key support at $5.18-1/2, the 61.8pc retracement of the uptrend from $5.01-3/4 to $5.46.

The failure, along with the three-wave structure of the correction, indicates a completion of the drop.

Either a decent bounce has started, or the uptrend has resumed.

A break below $5.18-1/2 could cause a fall to $5.12.

On the daily chart, another support at $5.20-3/4 helped stop the fall.

It is established by the 23.6pc projection level of an upward wave C from $5.01-3/4.

This wave looks incomplete. It may extend into a range of $5.52 to $5.83-1/4.