CBOT wheat may fall more into $5.50 to $5.54-1/4 range

• The current correction may match the one from the Oct. 21, 2019 high of $5.39-1/4, which corrected about 50pc of the preceding rise.
• The range is formed by the 76.4pc and the 86.4pc projection levels of an uptrend from $5.16-1/4. The head-and-shoulders has been confirmed.

SINGAPORE: CBOT March wheat may fall more into a range of $5.50 to $5.54-1/4 per bushel, as suggested by a projection analysis and a head-and-shoulders.

The range is formed by the 76.4pc and the 86.4pc projection levels of an uptrend from $5.16-1/4. The head-and-shoulders has been confirmed, indicating a target around $5.30.

Resistance is at $5.60-1/2, a break above which could lead to a gain to $5.63-1/2.

Wave pattern suggests the progress of a downward wave c, which is capable of travelling into a wide range of $5.23 to $5.43-1/2.

On the daily chart, the current correction may match the one from the Oct. 21, 2019 high of $5.39-1/4, which corrected about 50pc of the preceding rise.

Based on this observation, a retracement analysis on the rise from $5.01-3/4 to $5.92-1/2 reveals a target of $5.47, the 50pc level, which is also suggested by a rising channel.