SINGAPORE: CBOT July wheat may test a support at $4.65-3/4 per bushel, a break below which could cause a loss to $4.47-3/4.
The support is provided by the 23.6pc retracement of the downtrend from $6.19 to $4.18-1/2. Wheat failed to break the resistance at $4.95.
The failure confirmed the completion of the bounce from $4.18-1/2.
In the meantime, wheat failed to break a falling trendline as well. The intact trendline suggests a steady downtrend from $6.19.
On the hourly chart, wheat completed a corrective wave cycle, as confirmed by a projection analysis.
It is expected to retrace towards the bottom of the wave b around $4.46-1/4.
A break above $4.81 may lead to a gain into the range of $4.85-1/2 to $4.91-3/4.
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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.
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