SINGAPORE: CBOT wheat is expected to test a resistance at $8.01-3/4 per bushel, a break above which could lead to a gain into $8.24 to $8.42-3/4 range.
The contract stabilized around a support at $7.65-1/2.
The stabilization signals the formation of a bottom, as the bullish divergence on the hourly RSI has significantly decreased the chance of a break below this level.
A wedge is contracting to a point, which may turn out to be a bottom pattern.
A break below $7.65-1/2 could confirm the continuation of the downtrend towards the range of $7.07-1/4 to $7.36-1/2.
CBOT wheat could test resistance at $8.01-3/4
On the daily chart, the candlestick pattern between July 22 and July 25 could be roughly regarded as a harami cross which is a bullish reversal signal.
A close above $7.92 on Tuesday could further signal the reversal.
A close below $7.70, the open price of July 25, may indicate an extension of the wave e towards $7.27-1/2.
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