SINGAPORE: CBOT September wheat may retest a resistance at $7.24-1/2 per bushel, a break above which could lead to a gain to $7.34-1/4.

The bounce from the Aug. 20 low of $7.09-1/4 consists of three waves. So far, only two have unfolded.

The wave c is expected to travel into $7.34-1/4 to $7.42 range.

Support is at $7.18, a break below which could cause a fall to $7.09-1/4.

A retracement analysis on the uptrend from $6.09-1/2 to $7.74-3/4 reveals a support at $7.11-1/2 which caused the current bounce.

Based on this retracement analysis, wheat may rise to $7.35-3/4, the 23.6% level. On the daily chart, a projection analysis marks a support at $7.11, which works together with $7.11-1/2 on the hourly chart to stop the fall.

This support has triggered a bounce towards $7.42. A break below $7.11 could open the way towards $6.72-1/4.

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