CBOT wheat may fall more to $4.26-1/4

SINGAPORE: CBOT December wheat may break a support at $4.29-1/4 per bushel and fall more to the next support at $4.26-1/4, as suggested by a Fibonacci retracement analysis and a head-and-shoulders.

These supports are identified respectively as the 14.6 percent and the 7 percent Fibonacci retracements of the downtrend from the Sept. 27 high of $4.62-3/4 to the Oct. 23 low of $4.23-3/4.

A tiny head-and-shoulders has been confirmed, indicating a target at $4.23-3/4. This pattern will become invalid, should wheat stabilize around $4.29-1/4 and break above $4.32-3/4, as the break will open the way towards $4.38-1/2.