SINGAPORE: CBOT May wheat may break a support at $4.66 per bushel and fall into a range of $4.58-3/4 to $4.63.
A bounce from the March 11 low of $4.27 could have completed. The completion was indicated by the bearish divergence on the hourly RSI and the failure of the contract to break a resistance at $4.77-1/4, the 123.6 percent projection level of an upward wave C from $4.40-1/4.
Working together with the resistance is another one at $4.74-3/4, the 23.6 percent retracement of the downtrend from $6.30-1/4 to $4.27 on the daily chart.
Most likely, wheat would retrace to $4.56-1/2. A break above $4.74-3/4 could open the way towards $5.04-1/2.
* 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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