SINGAPORE: CBOT March wheat may test a resistance at $6.72-3/4 per bushel, a break above which could lead to a gain into $6.80 to $6.91-1/2 range.

The resistance is identified as the 61.8% projection level of an upward wave (3) from $6.43. This wave is capable of traveling to $6.91-1/2.

A small double-bottom forming around $6.43 has been confirmed, suggesting a target around $6.85. A break below $6.61-1/2 will not only make this pattern invalid, but also open the way towards $6.43 to $6.54-1/4 range.

On the daily chart, wheat is retesting a resistance at $6.68-1/2, the 23.6% retracement of the uptrend from $5.89-3/4 to $6.93.

The contract is highly likely to overcome this barrier in its current attempt, following its first failure on Jan. 27.

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