SINGAPORE: CBOT July wheat may test a resistance at $4.52 per bushel, a break above which could lead to a gain to $4.62-1/4.
The resistance is provided by the 86.4 percent projection level of a downward wave C from $5.40-1/4. This wave has completed at the March 11 low of $4.35-1/2.
A flat pattern has been unfolding from this low. It consists of three waves that are roughly equal in length. Such a characteristic would mean that the current wave c could travel to $4.77.
A break below $4.38-1/4 could signal the continuation of the downtrend towards $4.23. On the hourly chart, a projection analysis reveals a target at $4.52-1/2, the 38.2 percent level, which is almost identical with $4.52 on the daily chart. This target will be confirmed when wheat breaks $4.45-1/2.
* 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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