CBOT wheat to break resistance at $4.27-1/2

SINGAPORE: CBOT September wheat is expected to break a resistance at $4.27-1/2 per bushel, and rise into a range of $4.30-1/4 to $4.34-1/4, driven by a wave C.

The resistance is provided by the 76.4 percent Fibonacci projection level of the wave C, the third wave of a three-wave cycle from the Aug. 2 low of $3.99-1/4. This wave is capable of travelling to $4.34-1/4, the 100 percent level.

Wheat failed three times to break the resistance, but succeeded in its fourth attempt. An immediate target will be $4.30-1/4, the 86.4 percent level.

Support is at $4.23-1/4, the 61.8 percent level, a break below which could cause a loss limited to $4.20, the 50 percent level.