CBOT wheat signals mixed

• The range is formed by the 38.2pc and the 50pc retracements of the downtrend from $5.28 to $4.93-3/4.
• A break below $5.06-3/4 could cause a fall into the range of $4.98-3/4 to $5.01-3/4, while a break above $5.10-3/4 may lead to a gain into the range of $5.14-3/4 to $5.19-3/4.

SINGAPORE: Signals are mixed for CBOT July wheat, as it is moving sideways in a narrow range of $5.06-3/4 to $5.10-3/4 per bushel.

The range is formed by the 38.2pc and the 50pc retracements of the downtrend from $5.28 to $4.93-3/4.

A break below $5.06-3/4 could cause a fall into the range of $4.98-3/4 to $5.01-3/4, while a break above $5.10-3/4 may lead to a gain into the range of $5.14-3/4 to $5.19-3/4.

The bias looks towards the upside on the daily chart. An inverted hammer forming on Tuesday suggests a completion of the fall from the May 21 high of $5.24.

Making this completion more convincing is the fact that this candlestick pattern appeared around a support at $5.04, the 123.6pc projection level of a downtrend from $5.61-1/2.

Chances are the contract may rise towards $5.15.