CBOT wheat may stabilise around $6.50
- Deep as it is, the drop from the July 1 high of $6.94-1/4 is regarded as a pullback towards a falling trendline
SINGAPORE: CBOT September wheat is expected to stabilise around a support at $6.50 per bushel, and test a resistance at $6.61-1/4 thereafter.
Deep as it is, the drop from the July 1 high of $6.94-1/4 is regarded as a pullback towards a falling trendline. As long as wheat hovers above the line, the uptrend from $6.32-1/4 may resume.
A break below $6.50 could open the way towards $6.32-1/4 to $6.43-1/4 range. Signals on the daily chart are a bit conflicting with that on the hourly chart.
Wheat broke a support at $6.66-1/2, and it may slide more towards $6.35-1/2. The uptrend will remain intact, so long as the contract stays above $6.35-1/2. A break could confirm a reversal of the trend from $5.03-3/4.
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