SINGAPORE: CBOT March wheat may retest a resistance at $7.62 per bushel, a break above which could lead to a gain to $7.68.
The contract has broken a falling trendline. The break signals a reversal of the downtrend.
The moderate fall triggered by the resistance at $7.62 is classified as a pullback towards a falling trendline.
The pullback may end around either $7.54-3/4 or $7.49-3/4.
Thanks to the strong rise on Jan. 7, the bullish momentum is expected to maintain for one or two days, thus pushing prices higher.
A break below $7.49-3/4 could cause a fall $7.35-1/2 to $7.43. On the daily chart, the contract managed to hover above a support at $7.50-3/4. The false break below this level suggests a possible reversal of the downtrend from $8.74-3/4.
Even if the trend has not reversed, the contract may still bounce to $7.80.
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.