SINGAPORE: CBOT wheat may retest a resistance at $7.03-1/2 per bushel and a break could lead to a gain to $7.18-1/2.

The current rise adopted a five-wave mode. The wave 5 is unfolding towards $7.03-1/2. This wave pattern suggests an extension of the uptrend to $7.67-1/2.

A break below $6.88-1/4 may cause a fall to $6.69.

The target at $7.67-1/2 will no longer be valid then. On the daily chart, the uptrend from $5.92-1/4 to $7.69-1/2 also consists of five waves.

This impulsive wave mode is highly consistent with the one from the May 26 low of $6.39-1/2. The consistency confirms a steady uptrend from $4.96-1/4.

The contract is poised to retest a resistance zone of $7.01-3/4 to $7.05, a break could open the way towards $7.27-1/2.

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