SINGAPORE: CBOT July wheat may test a resistance at $6.46-1/2 per bushel, a break above which could lead to a gain into $6.52-3/4 to $6.56-3/4 range.
The contract could be riding on a powerful wave 3, which is capable of travelling to $6.73-3/4. Alternately, this wave could be labelled “c”.
The resistance at $6.46-1/2 works as a major obstacle, but only to the wave c.
The wave 3 could be strong enough to break this level and extend thereafter. Support is at $6.36, a break below which could be followed by a drop to $6.29-1/2.
Wheat jumps to near 3-week high on Black Sea supply woes, China weather
On the daily chart, both a wave C and a small wave c may have completed in the support zone of $5.61-3/4 to $5.83-1/2.
They will be deeply reversed. The bullish divergence on MACD indicates a further gain towards $6.70 to $6.96-3/4 range.
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