CBOT wheat still targets $4.95

SINGAPORE: CBOT July wheat still targets $4.95 per bushel, as suggested by a retracement analysis.

The current uptrend from $4.18-1/2 is against a downtrend from $6.19. The retracement analysis on the trend reveals a target range of $4.95 to $5.18-3/4, formed by the 38.2% and the 50% levels. Based on this analysis, the trendline falling from $6.19 may be broken.

A closer look at the hourly chart shows that wheat has pierced above $4.85-1/2, the 86.4% projection level of an upward wave c from $4.46-1/4. It is expected to climb to $4.91-3/4.

Support is at $4.81, a break below which could cause a loss to $4.74-1/4.

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** 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. **