SINGAPORE: CBOT December wheat may retest a resistance at $7.66-3/4 per bushel, a break above could lead to a gain at $7.73-1/4.
The uptrend remains intact, which is riding on a wave c that has briefly pierced above $7.66-3/4. This wave has a better chance of extending to $7.73-1/4.
The consolidation triggered by the resistance has been shaped into a small triangle, which may turn out to be a bullish continuation pattern.
A break below $7.56-1/4 could cause a fall into the range of $7.45-1/2 to $7.49-1/2. On the daily chart, a doji formed on Monday around a resistance at $7.61.
This is not necessarily a bearish reversal pattern. It could signal a temporary balance between bullish and bearish forces. Only a black candlestick on Tuesday could add some bearish colour to this doji.
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.