Markets

CBOT wheat to retrace to $7.71 a bushel

SINGAPORE : The CBOT December wheat contract will retrace to $7.71 per bushel as it failed a resistance zone of $8.07-1/

Published August 31, 2011 Updated August 31, 2011 06:10am

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By Shoaib Ur Rehman

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The zone was formed by the 61.8 percent Fibonacci retracement on the fall from $9.23-1/4 to $6.39 and a 100 percent Fibonacci projection level of the wave "c" target based on the length of the wave "a".

The failure of the contract to break above this zone signals a possible completion of the rebound that started at the July 1 low of $6.39.

Only a rise above $8.14-1/2 could open the way towards $8.56, the 76.4 percent retracement on the fall from $9.23-1/4 to $6.39.

** Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.

No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.

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