SINGAPORE: CBOT September wheat may fall to $5.09-1/2 per bushel, as it has cleared a support at $5.17-1/2.
The support is identified as the 76.4pc projection level of a downward wave c from $5.44.
This wave is expected to travel to $5.09-1/2, which is suggested by a pennant as well.
A retracement analysis on the rise from $4.71 to $5.51-3/4 reveals a support at $5.11-1/4, the 50pc level, which may work together with the one at $5.09-1/2 to trigger a decent bounce.
The downtrend may resume upon the completion of the bounce, as on the daily chart, a retracement analysis on the downtrend from $5.92-3/4 to $4.71 reveals a lower target of $4.99-1/2, the 23.6pc level, which is suggested by a falling channel.
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