SINGAPORE: CBOT December wheat may test a support at $5.90 per bushel, a break below which could cause a fall to $5.79.

The contract failed three times to break a resistance at $6.02-1/2, the 50pc projection level of a downward wave (c) from $6.26-1/4.

The repeated failures indicate a top around this level.

Wheat may first fall to $5.90.

A break above $6.02-1/2 could lead to a gain to $6.15.

On the daily chart, the contract failed again to break a resistance at $6.04-3/4.

The failure signals a further consolidation below this level and above $5.84-1/4.

Once wheat drops to $5.84-1/4, the break below a rising trendline will be confirmed.

Such a break will suggest a reversal of the uptrend from $4.97.

The contract may then extend its loss into a range of $5.50-3/4 to $5.67-1/2.