CBOT wheat to retrace to $7.54-1/4 a bushel
SINGAPORE: CBOT July wheat may fail a resistance at $7.77-1/2 and retrace to $7.54-1/4 per bushel as a double-top has been reconsidered.
The rebound from the June 1 low of $7.54-1/4 could be a pullback towards the neckline resistance of the double-top at $7.77-1/2, as after two trading sessions of struggle, wheat is still unable to clear this barrier.
A rise above $7.85 will confirm a high-low bottom, which points to $8.00, with an upside potential extended to $8.28-3/4, the high touched on May 26.
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.
Copyright Reuters, 2011
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