- Until the contract gets out of a range of $6.29 to $6.53-1/2, the trending signal may remain mixed.
SINGAPORE: CBOT March wheat may test a support at $6.36-1/4 per bushel, a break below which could cause a fall to $6.25-3/4.
The contract is riding on a wave C from $6.71. This wave is capable of traveling to $6.02-1/4, its 100% projection level. The bounce triggered by the support at $6.28-1/2 has been shaped into a triangle, which looks like a bearish continuation pattern, to be followed by a fall.
A break above $6.48-1/4 could lead to a gain into the $6.53-1/2 to $6.60-1/4 range. On the daily chart, wheat is still consolidating around $6.41-1/4, the 61.8% retracement of the uptrend from $5.89-3/4 to $6.93.
Until the contract gets out of a range of $6.29 to $6.53-1/2, the trending signal may remain mixed.
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