CBOT wheat still targets $5.06-3/4

SINGAPORE: CBOT March wheat still targets $5.06-3/4 per bushel, as indicated by a Fibonacci retracement analysis and a falling channel.

A former support has been broken, which was provided by the 76.4 percent Fibonacci retracement on the uptrend from the Sept. 25, 2014 low of $4.80 to the Dec. 18, 2014 high of $6.77. The next support will be at $5.06-3/4, the 86.4 percent retracement.

The lower channel line of a falling channel even points a much lower level, which is close to $4.80. A rebound from the current level may be limited to $5.26-1/2, now a resistance.