CBOT wheat may break $4.97-1/2 and rise more

• CBOT December wheat may test a resistance at $4.97-1/2 per bushel, with a good chance of breaking above this level and rising towards a range of $5.02 to $5.08-1/4.
• The correction triggered by this barrier could have completed around a support at $4.86

SINGAPORE: CBOT December wheat may test a resistance at $4.97-1/2 per bushel, with a good chance of breaking above this level and rising towards a range of $5.02 to $5.08-1/4.

The resistance is identified as the 38.2pc projection level of a wave C from $4.50-1/2.

The correction triggered by this barrier could have completed around a support at $4.86, the 23.6pc projection level of a small wave c from $4.76-1/4.

With wheat having climbed above $4.92-1/4, both the wave c and the wave C could have resumed.

The wave c is capable of travelling to $5.18-1/4, while the wave C may extend to $5.74.

Pivotal support is at $4.86, a break below which could cause a loss to $4.79-1/2.

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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.