SINGAPORE: CBOT March wheat may revisit its Dec. 16 low of $7.51-1/4 per bushel, following its failure to break a resistance at $7.76-3/4.
The failure confirmed a completion of the bounce from this low. The downtrend from $8.22-3/4 remains steady and may have resumed. It is riding on a wave C, which could travel to $7.30-3/4, its 100% projection level.
A break above $7.76-3/4, which looks unlikely, could open the way towards $7.87-1/2. Strategically, the target at $7.51-1/4 will be confirmed when wheat breaks $7.65-3/4.
On the daily chart, a pullback towards a rising trendline has completed. Wheat is expected to retest the support at $7.50-3/4.
A break could open the way towards $7.21-1/4, near $7.30-1/2, the 100% projection level of the drop from $8.22-3/4.