SINGAPORE: CBOT July wheat still targets $5.18-3/4, as it failed to break a resistance at $5.42-1/4 per bushel.
The resistance is identified as the 61.8pc retracement on the downtrend from $6.19 to $4.18-1/2. Even though it is not clear if the uptrend from $4.18-1/2 has reversed, at least wheat could retrace to $5.18-3/4 or to $4.95.
A rising trendline suggests the target at $5.18-3/4 as well.
On the hourly chart, another retracement analysis reveals a support at $5.25-3/4, the 38.2pc level of the uptrend from $4.87-3/4 to $5.49-1/4.
The bounce triggered by the support was very weak. It was completely reversed. The reversal signals an extension of the short downtrend towards $5.18-1/2, which is pointed by a rising trendline.
A break above $5.34-1/2 could lead to a gain into the range of $5.40-1/4 to $5.49-1/4.
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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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