SINGAPORE: CBOT March wheat may test a resistance at $7.95-1/4 a bushel, a break above which could open the way towards $8.09.
The strong bounce triggered by the support at $7.73 suggests a completion of the fall from $8.31-1/2.
After breaking the resistance at $7.84-1/4, wheat is heading towards the next resistance at $7.95-1/4.
Based on the assumption that the current rise would be somehow symmetrical to the drop from the Jan. 20 high of $8.02-3/4, wheat could rise to $7.95-1/4.
A break below $7.84-1/4 may open the way towards $7.73.
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On the daily chart, the contract stabilized in a support zone of $7.72-1/2 to $7.80. It may retest a resistance range of $8.11-1/2 to $8.16, as a bullish flag suggests a target of $9.20.
The drop from the Jan. 25 high of $8.31-1/2 could be classified as a pullback towards the flag.
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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