CBOT wheat may retest support at $4.24

SINGAPORE: CBOT September wheat may retest a support at $4.24 per bushel, with a good chance of breaking below this level and falling more towards the range of $4.15-3/4 to $4.20-1/2.

The support is provided by the 76.4 percent Fibonacci retracement on the uptrend from the July 5 low of $4.15-3/4 to the July 13 high of $4.51-3/4. It temporarily blocks the way towards the 86.4 percent level at $4.20-1/2.

The drop from $4.51-3/4 looks like a continuation of the downtrend preceding to the low at $4.15-3/4, as a result, this low could be revisited. Resistance is at $4.29-1/2, the 61.8 percent level, a break above which could lead to a gain to the 50 percent level at $4.33-3/4.