SINGAPORE: CBOT wheat is poised to break a resistance at $7.03-1/2 per bushel and rise towards $7.18-1/2.

The rise from $6.39-1/2 adopted a five-wave mode, which suggests the development of a zigzag or a bigger five-wave cycle.

Most likely, the current rise will consist of five waves as well. The contract is presumed to be riding on a wave (3) which could travel to $7.67-1/2.

A break below $6.88-1/4 may cause a fall into the $6.48-1/4 to $6.58 range. On the daily chart, wheat is retesting a resistance zone of $7.01-3/4 to $7.05.

Following its failure, the contract is expected to break the zone and rise towards $7.27-1/2.

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