SINGAPORE: CBOT March wheat may gain more into $7.73-3/4 to $7.81 range, as it has pierced above a resistance at $7.68 per bushel.
The current bounce targets a wave b peak at $7.93. Wheat has been observing closely a set of projection levels of the wave c.
After its failure to break a resistance at $7.68, the contract almost succeeded in its second attempt.
US wheat range-bound on weather uncertainties
The bounce will be considered as having completed, if wheat breaks a short rising trendline, especially a support at $7.62.
A target zone from $7.49-3/4 to $7.54-3/4 will be established thereafter.
A realistic target could be either $7.73-3/4 or $7.81. On the daily chart, the contract stabilized around a support at $7.50-3/4 twice.
The stabilization indicates a reversal of the downtrend from $8.74-3/4 or a further bounce towards $7.80 in the worst case. A break above $7.80 could open the way towards $8.16.
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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