CBOT wheat to retest resistance at $5.27-1/4

SINGAPORE: CBOT first month wheat is expected to retest a resistance at $5.27-1/4 per bushel, as it could have resumed its uptrend from $5.50-1/4.

The trend has been driven by a wave C, the third wave of a three-wave cycle from $4.95-1/4. This wave was disrupted by the resistance at $5.27-1/4, its 61.8 percent projection level.

Compared with the wave A, the wave C looks too short to be complete. It may consist of three smaller waves. The third wave, labelled c, has just started. It has travelled above $5.19 and is unfolding towards $5.27-1/4.

A break below $5.19 could cause a loss limited to $5.13-1/2.