SINGAPORE: CBOT July wheat may test a support at $5.07, a break below which could cause a fall to $5.02 per bushel.

A three-wave cycle from $4.93-3/4 has completed, as confirmed by its wave pattern and the deep fall on June 5.

A retracement analysis on the cycle reveals a break below $5.11-1/4, the 50pc level.

The break opened the way towards the range of $5.02-$5.07. A break above $5.11-1/4, now a resistance, may lead to a gain to $5.15-1/2.

On the daily chart, another retracement analysis shows that the bounce from $4.93-3/4 is against the downtrend from $5.64-1/4.

The indication is the longer trend from $5.71-1/2 remains intact.