SINGAPORE: CBOT July wheat may gain more to $5.40-1/2 per bushel, as suggested by its wave pattern and a projection analysis.
The contract is riding on a wave C from $4.66-1/4, which is capable of travelling to $5.40-1/2, its 100pc projection level. This wave consists of three smaller waves.
The third wave labelled c is unfolding.
Strategically, the target at $5.40-1/2 will be confirmed when wheat breaks the resistance at $5.24-1/4, the 76.4pc projection level of the wave c.
Support is at $5.16-1/4, a break below which could cause a loss into the range of $5.03 to $5.09-3/4. On the daily chart, wheat has cleared a resistance at $5.18-3/4, the 50pc retracement on the fall from $6.19 to $4.18-1/2.
It may rise to $5.42-1/4.
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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.
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