SINGAPORE: CBOT wheat is biased to retest a support at $8.47-3/4 per bushel, a break below which may open the way towards $8.35.
The contract failed twice to break a resistance at $8.76-1/2.
The failures suggest the formation of a double-top around $8.76-1/2, which will only be confirmed when wheat breaks $8.47-3/4.
The consolidation may develop into a continuation pattern as well, if wheat could break $8.76-1/2.
Wheat price jumps by Rs10 per kg
Immediate resistance is at $8.68-3/4, a break above which may lead to a gain to $8.76-1/2. On the daily chart, wheat faces a resistance at $8.73-1/4, which is enforced by a similar one of $8.70-1/4.
The pair withstood a few attacks by bulls. Even though it is almost certain that wheat could overcome these barriers and rise towards $9.49, the timing remains unknown.
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