CBOT wheat may rise into $5.68-1/2 to $5.71-1/2 range

• The completion is indicated by the strong rise from the Thursday low of $5.50-3/4.
• Support is at $5.60, a break below which could cause a fall into $5.51-1/4 to $5.56.

SINGAPORE: CBOT March wheat may rise into a range of $5.68-1/2 to $5.71-1/2 per bushel, as it may have completed a correction from the Jan. 22 high of $5.92-1/2.

The completion is indicated by the strong rise from the Thursday low of $5.50-3/4.

The rise makes a head-and-shoulders invalid.

The contract has cleared a resistance at $5.63-3/4, the 38.2pc projection level of a downward wave c. The next resistance will be at $5.68-1/2.

Support is at $5.60, a break below which could cause a fall into $5.51-1/4 to $5.56.

On the daily chart, the long-shadowed hammer forming on Thursday confirms a completion of the fall from $5.92-1/2. The contract is likely to rise towards this level.