SINGAPORE: CBOT March wheat may drop to $8.37 per bushel, as it failed to break a resistance at $8.51-1/2.
The correction from $8.74-3/4 may consist of three waves. The pause around $8.51-1/2 signals the development of the wave c towards $8.25-1/2.
A break above $8.51-1/2 could lead to a gain into $8.60-1/4 to $8.67-3/4 range.
The break will be confirmed when wheat goes above $8.55-1/4.
On the daily chart, a projection analysis reveals a similar resistance at $8.57, the 100% level, which is expected to work together with the one at $8.51-1/2 to temporarily stop the rise.
The uptrend remains intact within a rising channel despite the coming correction.
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