CBOT July wheat may retrace to $4.52-1/4 before rising

The resistance and the support are identified respectively as the 61.8 percent and the 50 percent Fibonacci retracements of a downtrend from the Feb. 16 high of $4.88-3/4 to the April 25 low of $4.16.

After breaking a trendline falling from the Feb. 16 high of $4.88-3/4, wheat is yet to pull back towards this trendline. The pullback may be triggered by the current resistance.

A break above $4.60-3/4 could lead to a gain to $4.71-1/2 while a break below $4.52-1/4 could cause a loss to $4.43-3/4.

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