CBOT wheat may retest support at $6.84-1/4
- On the daily chart, the contract failed to break a resistance at $7.05-1/4. It may fall towards a support at $6.66-1/2
SINGAPORE: CBOT September wheat may retest a support at $6.84-1/4 per bushel, a break below which could open the way towards the range of $6.63-3/4 to $6.74-1/4.
The depth of the correction from $7.18 signals a reversal of the uptrend from the July 9 low of $6.09-1/2. A retracement analysis on the rise from $6.30-1/2 to $7.18 reveals a support at $6.84-1/2 which temporarily stops the fall.
This analysis suggests a target zone of $6.63-3/4 to $6.74-1/4.
Resistance is at $6.97-1/4, a break above which could lead to a gain into $7.05 to $7.11-3/4 range.
On the daily chart, the contract failed to break a resistance at $7.05-1/4. It may fall towards a support at $6.66-1/2.
The steep surge from $6.09-1/2 deserves a decent correction, which could extend to $6.66-1/2, as indicated by the symmetrical nature of the chart.
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