SINGAPORE: CBOT March wheat may extend its bounce to $4.94 per bushel, as suggested by a projection analysis and a falling channel.
A three-wave cycle from $5.31-1/4 has temporarily completed around a support at $4.75-1/4, the 150 percent projection level of a downward wave (C) from $5.31-1/4.
The completion of the cycle has been confirmed by the five-wave structure of the deep fall from $5.24 and the strong recovery of the price from the Feb. 20 low of $4.75-3/4.
The falling channel suggests a further bounce to $4.94, from which, the downtrend may resume. A break above $4.94 could lead to a gain into the range of $4.99 to $5.02-3/4, while a break below $4.85 could cause a loss to $4.79-3/4.
On the daily chart, the current bounce was due to a support at $4.82-1/4, the Dec. 12, 2017 low. The stabilization around this support could be short-lived, as the contract is riding on a powerful wave C, which may travel to $4.70-3/4, its 161.8 percent projection level.
* 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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