- These patterns will be confirmed when wheat breaks $7.63-1/4.
SINGAPORE: CBOT wheat may revisit its May 7 high of $7.67-1/2 per bushel, as the uptrend has resumed.
The fall from this high was driven by a wave (4) which ended a bit earlier than expected. It will be reversed by the current wave (5) which is capable of travelling far above $7.69-1/2.
Based on the depth of the fall from $7.69-1/2 to $7.11-1/2, the wave (5) may extend to $8.26. Support is at $7.40-1/2, a break below which could cause a fall into $7.25 to $7.33-1/2 range.
On the daily chart, the consolidation over the past two weeks is taking the shape of a bullish triangle or pennant, both of which suggest an extension of the uptrend.
These patterns will be confirmed when wheat breaks $7.63-1/4.
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