CBOT wheat may test support at $5.01-1/4
- The support is identified as the 123.6pc projection level of a downward wave c from $5.44.
SINGAPORE: CBOT September wheat may test a support at $5.01-1/4 per bushel, a break below which could cause a fall to $4.96-1/4.
The support is identified as the 123.6pc projection level of a downward wave c from $5.44.
The support at $5.07 looks vulnerable. It may not hold.
A retracement analysis on the uptrend from $4.71 to $5.51-3/4 reveals a support at $5.01-3/4, the 61.8pc level, which will work together with the one at $5.01-1/4.
It is not very clear if wheat could break the zone of $5.01-1/4 to $5.01-3/4 in its first attempt. Most likely, it will fail.
Resistance is at $5.11-1/4, a break above which could lead to a gain to $5.17-1/2.
On the daily chart, a retracement analysis on the downtrend from $5.92-3/4 to $4.71 reveals a target of $4.99-1/2, the 23.6pc level, which is suggested by a falling channel.
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