CBOT wheat may revisit April 27 high of $7.69-1/2

SINGAPORE: CBOT wheat may revisit its April 27 high of $7.69-1/2 per bushel, as it has resumed its uptrend.

The correction from this high has been shaped into a triangle, which has been proved to be a bullish continuation pattern.

The pattern could be regarded as a part of a more bullish pennant that developed from the March 31 low of $5.92-1/4. The pennant indicates an aggressive target of $8.87.

Wheat has completed the pullback towards the triangle and may not turn back again. On the daily chart, the contract is riding on a wave 5, which is travelling towards $7.78-1/4.

Based on the depth of the correction from the April 27 high of $7.69-1/2, this wave may extend to $8.27-1/2.

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