CBOT wheat may retest support at $5.12-3/4
- The support is provided by the 38.2pc projection level of an upward wave c from $5.01-1/4. This wave failed to break a resistance at $5.19-3/4.
- Strengthening the resistance is another one at $5.20-3/4, the 38.2pc retracement on the downtrend from $5
SINGAPORE: CBOT July wheat may retest a support at $5.12-3/4 per bushel, a break below could cause a fall to $5.08-1/4.
The support is provided by the 38.2pc projection level of an upward wave c from $5.01-1/4. This wave failed to break a resistance at $5.19-3/4.
Strengthening the resistance is another one at $5.20-3/4, the 38.2pc retracement on the downtrend from $5.64-1/2 to $4.93-3/4.
The failure suggests a possible completion of the wave c, unless wheat could break the resistance soon.
A break 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.
These three resistances could be strong enough to cause a fall towards $5.04.