SINGAPORE: CBOT May wheat may drop into a range of $6.61-3/4 to $6.70-1/4 per bushel, as a bounce from the March 10 low of $6.61 has completed. The deep drop from the March 17 high of $7.12-1/2 confirmed a resumption of the downtrend from $7.84-1/2, which still observes closely a set of the projection levels.
Three small waves make up the bounce. The bottom of the wave at $6.77-1/2 failed to stop the fall.
Chances are the fall may extend to $6.61-3/4. Resistance zone is from $6.80-1/2 to $6.84-1/4, a break above which could lead to a gain into $6.89-1/2 to $6.93-3/4 range.
CBOT wheat may drop into $6.80-1/2 to $6.89-1/2 range
On the daily chart, the contract is retesting the support of $6.75-1/2, a break below which could open the way towards $6.06-3/4. The break will be confirmed when the contract falls below the March 10 low of $6.61.
It is not very clear if the support could trigger the second bounce.
The support is supposed to be stronger than the one at $7.31-1/4. Chances are high that the second bounce occurs around $6.61.
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