CBOT wheat may test support at $5.07-1/4

SINGAPORE: CBOT December wheat may test a support at $5.07-1/4 per bushel, a break below which could cause a loss to $5.04-3/4.

The support is provided by the 76.4 percent projection level of a downward wave C from $5.27-1/4. After extending below $5.11, this wave has a better chance of travelling to $5.01-1/4. However, a more realistic target will be $5.07-1/4.

Wheat has broken a rising trendline rising from $4.95-1/4. The trend from this level may be totally reversed. Should the contract be able to stabilize around $5.01-1/4 and rise, the target at $4.95-1/4 will be temporarily aborted.

A break above $5.11, now a resistance, could lead to a gain to $5.14-1/4.