Markets

CBOT wheat may retreat to $5.12-3/4 before rising

On the daily chart, a projection analysis on a downtrend from $5.61-1/2 reveals a similar resistance at $5.21-1/4, the 86.4pc level.
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SINGAPORE: CBOT July wheat may retreat to $5.12-3/4 per bushel before resuming its rise towards $5.31-1/2.

The contract is riding on a wave c, which is capable of travelling to $5.31-1/2, its 100pc projection level.

However, this wave lost its momentum around a resistance at $5.20-3/4, the 38.2pc retracement of the downtrend from $5.64-1/2 to $4.93-3/4.

A further correction towards $5.12-3/4 is highly likely.

A break above $5.20-3/4 could lead to a gain into the range of $5.24-1/4 to $5.31-1/2.

On the daily chart, a projection analysis on a downtrend from $5.61-1/2 reveals a similar resistance at $5.21-1/4, the 86.4pc level.