SINGAPORE: CBOT wheat may test a resistance at $11.43 per bushel, a break above which could lead to a gain into $11.59-1/4 to $11.68-3/4 range.
The contract is riding on a wave C from $10.34-1/4.
This wave may either end around $11.43 or extend to $12.10-1/2.
The former resistance at $11.22-1/4 triggered a correction on May 5, the depth of which suggests an extension of the wave C.
A break below $11.22-1/4, now a support, may cause a fall to $11.01-1/2.
On the daily chart, a flag pattern has been confirmed, suggesting a target around $12.30.
Govt decides to enhance wheat buying targets
However, a pullback towards this flag has been absent.
A retracement analysis on the uptrend from $6.81-3/4 reveals a resistance at $11.37-1/4, which is likely to trigger such a pullback.
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