CBOT wheat may retest resistance at $5.71-3/4

• The resistance is identified as the 61.8pc retracement on a downtrend from $5.92-1/2.
• The strong surge on Tuesday confirms a continuation of the uptrend from Sept. 3, 2019 low of $4.57-3/4.

SINGAPORE: CBOT March wheat may retest a resistance at $5.71-3/4 per bushel, probably after a correction to $5.58-3/4.

The resistance is identified as the 61.8pc retracement on a downtrend from $5.92-1/2. Following its first failure to break $5.71-3/4, wheat retreated below a support at $5.65-1/4.

Unless it could quickly climb above $5.65-1/4, it is likely to drop to $5.58-3/4 first. A further fall below $5.58-3/4 will be unlikely.

On the daily chart, the strong surge on Tuesday confirms a continuation of the uptrend from Sept. 3, 2019 low of $4.57-3/4.

A retracement analysis on the uptrend from $5.01-3/4 to $5.92-1/2 reveals a resistance at $5.71, which temporarily stops the rise.

Once wheat breaks this resistance, a double-bottom may be confirmed, which suggests an aggressive target around $6.93.