SINGAPORE: CBOT July wheat may retest a support at $5.18-1/2 per bushel, as the bounce on Thursday is regarded as a pullback towards a rising trendline.
The pullback was triggered by the support at $5.18-1/2, the 50% retracement on the uptrend from $4.87-3/4 to $5.49-1/4. A break below $5.18-1/2 could cause a loss into the range of $5.02-1/4 to $5.11.
Only a surge above $5.34-1/2 could signal the continuation of the uptrend towards $5.49-1/4. On the daily chart, a support at $5.18-3/4 helped trigger the pullback as well, which is at the 50% retracement on the downtrend from $6.19 to $4.18-1/2.
The candlestick forming on Thursday looks not big enough to suggest a reversal of the short downtrend from the June 17 high of $5.49-1/4. The trend may extend below $5.18-3/4.
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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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