Markets

CBOT wheat may slide to $3.96-1/2

SINGAPORE: CBOT December wheat may slide to $3.
Published November 18, 2016 Updated November 18, 2016 08:38am

SINGAPORE: CBOT December wheat may slide to $3.96-1/2 per bushel, as its bounce triggered by the support at $3.92-1/4 could have completed.

The support is provided by the 86.4 percent Fibonacci retracement of the uptrend from the Aug. 31 low of $3.86-3/4 to the Oct. 14 high of $4.28-1/4. The bounce could be broken down into three smaller waves, and such a structure indicates the downtrend from $4.28-1/4 remains steady.

The retracement analysis also reveals an immediate support at $3.96-1/2. Resistance is at $4.02-1/2, a break above which may lead to a gain to $4.07-1/2.

Copyright Reuters, 2016