Markets

CBOT wheat to retest resistance at $4.21-1/4

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SINGAPORE: CBOT Sept. wheat is expected to retest a resistance at $4.21-1/4 per bushel, with a good chance of breaking above this level and rising more towards the next resistance at $4.26-3/4.

These resistances are identified respectively as the 61.8 percent and the 76.4 percent Fibonacci retracements on the drop from the July 25 high of $4.35-1/4 to the Aug. 2 low of $3.99-1/4.

A high-low bottom forming between Aug. 2 and Aug. 4 indicates a target at $4.30-1/4, the 86.4 percent retracement. The contract seems to have stabilized around a support at $4.13, the 38.2 percent retracement a, it could have resumed its uptrend.

Copyright Reuters, 2016