SINGAPORE: CBOT March wheat may drop to $7.99-1/2 per bushel, as it has broken a support at $8.14.
The break basically wipes out the chance of the uptrend continuation, unless wheat could close firm above this support on Tuesday.
The drop is driven by a wave c, which is travelling towards $8.03-3/4, its 100% projection level, near $7.99-1/2.
A break above $8.15-3/4 could lead to a gain to $8.25-1/2.
On the daily chart, wheat has fallen below a rising channel and moved into a duplicated lower channel, which suggests a target of $7.72-1/4.
The current correction could be similar to the one from the Aug. 13 high of $7.95-1/4, to reverse a big part of the gain from $6.87-3/4.
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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