CBOT wheat may retest support at $6.48-1/4
- Confirmation of the reversal will be when wheat climbs above $6.79.
SINGAPORE: CBOT wheat may retest a support at $6.48-1/4 per bushel, a break below which could cause a fall to the May 26 low of $6.39-1/2.
The contract remains on a steady downtrend within a falling channel. A small double-top forming around $7.03-1/2 suggests a target of $6.39-1/2.
A break above $6.69-1/2 could be the very early signal that the short downtrend from the June 7 high of $7.04 has reversed.
Confirmation of the reversal will be when wheat climbs above $6.79.
On the daily chart, wheat pierced deeper below a support zone of $6.59-3/4 to $6.65. Chances are it may fall towards the next support zone of $6.32-3/4 to $6.34.
The chance of a further fall will be greatly reduced, if wheat could close above $6.65 on Wednesday.
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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