SINGAPORE: CBOT wheat may retest a resistance at $7.57-1/2 per bushel, a break above which could lead to a gain to $7.67-3/4.
The strong rise from the Aug. 18 low of $7.25-3/4 suggests a reversal of the downtrend from $8.10-1/2.
A bold speculation is the contract could be rising towards a falling trendline.
A drop below $7.46-1/4, however, could prove the rise to be a simple pullback towards the August 3 low of $7.52.
A target zone of $7.35 to $7.41-1/4 will be established accordingly. On the daily chart, a projection analysis on the downtrend from $11.19-1/2 reveals a strong support at $7.19, which stopped the drop.
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Even though there is no typical trend reversal pattern spotted, the bullish divergence on the daily RSI suggests a further gain.
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