SINGAPORE: CBOT September wheat may test a support at $7.23-3/4 per bushel, a break below which could cause a fall to $7.11-1/2.

The uptrend from the July low of $6.09-1/2 consists of three waves. The wave c and the wave a are equal. This equality, along with the deep fall from the Aug. 13 high of $7.74-3/4, signals a reversal of the trend.

The 38.2% retracement of the trend at $7.11-1/2 works as a target. However, another retracement analysis on a shorter trend from $7.08-1/4 reveals a support at $7.23-3/4, a break below which could open the way towards $7.11-1/2.

Resistance is at $7.41-1/2, a break above which could lead to a gain to $7.50-1/2.

On the daily chart, the contract broke a support at $7.42. The break could cause a fall to $7.11.It is doubtful whether an upward wave C from $6.10-1/4 could resume, as the drop from the Aug. 13 high of $7.74-3/4 looks too deep.

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