SINGAPORE: CBOT wheat may retest a support at $7.14-1/2 per bushel, as its correction from $7.69-1/2 looks incomplete.
The correction consists of three waves. The third wave labelled c is still unfolding, as it is too short compared to the wave a.
A break above $7.35-1/2 could lead to a gain into $7.48-1/2 to $7.59-1/4. On the daily chart, the long-shadowed shooting star on Tuesday has been confirmed as a reversal pattern by the following black candlestick on Wednesday.
This reversal was due to the completion of the uptrend from $6.25-3/4, as revealed by the wave pattern on the hourly chart. It does not signal the completion of the whole trend from $5.92-1/4, which remains intact.
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Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.
No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.
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