SINGAPORE: CBOT March wheat may retest a support at $7.84 per bushel, a break below which could cause a fall to $7.71-3/4.
The contract is riding on a wave c from $8.55-1/4. This wave is capable of travelling to $7.71-3/4. The bounce triggered by the support at $7.84 seems to be ending around a resistance at $7.99-1/2, the 76.4% retracement of the uptrend from $7.76-1/2.
The retracement analysis also reveals a deep reversal of the uptrend. The low at $7.76-1/2 is highly likely to be revisited.
A further gain from the current level may be limited to $8.03-3/4.
On the daily chart, the lower channel 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.
Wheat may extend loss to $7.59, as the previous correction reversed around 61.8% of the uptrend.
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