SINGAPORE: CBOT December wheat may hover below a strong resistance at $7.45-1/2 per bushel, or retreat again towards a support at $7.35-1/2.
The resistance is identified as the 61.8% projection level of a wave c from $7.28-1/2. Even though this wave may extend to $7.56-1/4, its failure to overcome this barrier on Tuesday suggests a completion of its first part.
The contract is expected to consolidate within a range of $7.35-1/2 to $7.45 for at least a few days before choosing its next direction.
A break above $7.45-1/2 could open the way towards $7.56-1/4.
On the daily chart, a projection analysis on the uptrend from $6.77 reveals a similar resistance at $7.41-1/4, the 38.2% level.
It appears the attempt to break this resistance will be successful. However, until wheat stands firm above the Tuesday high of $7.45-1/4, the break will not be considered valid.
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