CBOT wheat may retest support at $6.58
- The current drop is highly likely to extend to $5.92-1/4, the bottom of the wave B.
SINGAPORE: CBOT wheat may retest a support at $6.58 per bushel, a break below which could cause a fall to the May 26 low of $6.39-1/2.
The bounce triggered by this support failed to extend above a falling channel. The downtrend in the channel remains steady and is extending towards $6.39-1/2 to $6.48-1/2 range.
A small double-top forming around $7.03-1/2 suggests a target of $6.39-1/2. Resistance is at $6.79, a break above which may lead to a gain to $6.88-1/4 to $7.03-1/2 range.
On the daily chart, the downtrend from the May 7 high of $7.67-1/2 seems to have resumed.
After piercing below a support zone of $6.59-3/4 to $6.65, wheat approached it again. Chances are it may break this zone and fall towards the next support range of $6.32-3/4 to $6.34.
The reversal of the uptrend from $4.96-1/4 has been more or less confirmed.
The current drop is highly likely to extend to $5.92-1/4, the bottom of the wave B.
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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