SINGAPORE: CBOT July wheat may break a resistance at $4.91-3/4 per bushel and bounce towards $4.95, following its failure to break a support at $4.87-1/2.

The support is identified as the 76.4pc projection level of a downward wave (c) from $5.09-1/4.

Strengthening the support is a similar one established by a falling trendline.

A break below $4.87-1/2 could confirm the extension of the downtrend towards the range of $4.81 to $4.84-3/4.

However, a break below these supports will be unlikely, as they are working together with another one at $4.86-1/4 on the daily chart, which is the 161.8pc projection level of a downward wave C from $5.61-1/2.

This wave is highly likely to complete around $4.86-1/4.