SINGAPORE: CBOT March wheat may test a support of $7.76-1/4 per bushel, a break below which could open the way towards $7.68-1/2. A wave C from $7.44-1/4 has completed, as confirmed by its five-wave structure. The contract may drop into a wide range from the bottom of the wave 2 to the bottom of the wave 4.
Wheat has broken a support at $7.83-1/4. The next support will be at $7.76-1/4. A rise above $7.86-1/2 could be extended to $7.93.
On the daily chart, the current rise is presumed to be against the downtrend from $9.62. A retracement analysis on the trend reveals a target of $8.07-3/4. However, wheat failed to maintain its momentum towards this level. It underperformed over the past two days.
CBOT wheat may revisit Dec 30 high of $7.99
The contract seems to be pulling back towards $7.71-1/4. The target of $8.07-3/4 has to be temporarily aborted. It will be reconsidered only when wheat is able to stabilize around $7.71-1/4.
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