SINGAPORE: CBOT March wheat may test a resistance at $5.89-3/4 per bushel, a break above which could lead to a gain into $5.94-1/4 to $6.00-3/4 range.

The resistance is provided by the 86.4% projection level of a downtrend from $6.28-3/4. Wheat failed twice to break a support at $5.66-1/2. The failures resulted in the formation of a double-bottom.

This pattern suggests a target of $5.94-1/4. It indeed has a more bullish indication that the downtrend from the Oct. 21 high of $6.37-3/4 has reversed.

Support is at $5.84, a break below which could cause a fall into $5.73 to $5.80-1/2 range. On the daily chart, wheat has broken a resistance at $5.80-1/2. It is expected to rise to $6.02-1/4.

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