SINGAPORE: CBOT September wheat may bounce moderately to $5.38-1/4 per bushel before falling again.

The resistance is identified as the 176.4pc projection level of a wave 3 from $4.87-3/4.

This is the third wave of a five-wave cycle from $4.71.

The cycle has ended at $5.51-3/4.

The contract found a support at $5.30-3/4, which is strengthened by another one at $5.32-1/2, the 23.6pc retracement of the cycle.

These supports are working together to trigger a bounce.

A break above $5.39-3/4 could lead to a gain to $5.45-1/4.

On the daily chart, the contract failed to break a falling trendline, due to a resistance at $5.46, the 61.8pc retracement of the downtrend from $5.92-3/4 to $4.71.

Chances are that it may fall towards $5.17-1/2.