SINGAPORE: CBOT March wheat may break a support at $5.16-3/4 per bushel, and fall to the next support at $5.13-1/4.
These supports are identified respectively as the 38.2 percent and the 23.6 percent projection levels of a downward wave c from $5.08.
The contract failed to break a resistance at $5.22-1/4. The failure caused a pullback towards a falling trendline. The pullback came into place just in time, as the surge on Thursday was too sharp to sustain.
A break above $5.22-1/4 could confirm the extension of the wave C towards $5.25-3/4. On the daily chart, wheat broke a falling trendline. The break strongly indicates an continuation of the uptrend from $5.01-1/4.
The key resistance is at $5.23, the 61.8 percent projection level of an upward wave C. Only a break above this barrier could confirm a target at $5.36-1/2.
* Charts are not available in reports received in email box through "Alert". To get charts, use the news code of TECH/C to retrieve the original reports.
** Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.
No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.
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