SINGAPORE: CBOT July wheat may test a resistance at $5.08-1/2 per bushel, a break above which could lead to a gain to $5.12-3/4.

The resistance is identified as the 38.2pc projection level of an upward wave (c) from $4.95-1/4.

It is the third wave of a presumed three-wave cycle from the May 18 low of $4.93-3/4.

It has a minimum target of $5.08-1/2 and a maximum one of $5.30-1/2.

Support is at $5.03-1/2, a break below which could cause a fall to $5.00-1/4.

On the daily chart, the contract has cleared a resistance at $5.04, the 123.6pc projection level of a downward wave C from $5.61-1/2.

It is expected to test the next resistance at $5.08 which is near $5.08-1/2 on the hourly chart.