SINGAPORE: CBOT March wheat may test a support at $8.04-1/2 per bushel, a break below which could cause a fall to $7.97-3/4.
The contract is riding on a wave c, which lost its momentum around a resistance at $8.22-1/2.
This wave failed twice to break the resistance.
The failures indicates the formation of a temporary top.
A break above $8.15-3/4 could lead to a gain into $8.22-1/2 to $8.26-3/4 range.
Immediate support is at $8.08-3/4, a break below which could open the way toward a zone of $7.97-3/4 to $8.04-1/2.
On the daily chart, the spinning top on Dec. 23 around a resistance at $8.16 confirmed an exhaustion of the rise. A correction is due.
The correction could be deep enough to extend close to $7.80, which will be symmetrical to the rise from the Nov. 30 low of $7.82-1/2.
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.
Comments
Comments are closed for this article.