SINGAPORE: CBOT December wheat may revisit its Nov. 19 low of $8.13-1/2 per bushel, as a correction from the Nov. 18 high of $8.43-1/4 has not completed.
The correction would consist of three waves. The second wave labelled b is ending around $8.32-3/4, which will be totally reversed by the wave c.
The structure of the wave a suggests a much short wave c, which may end around $8.12. A break above $8.32-3/4 could lead to a gain to $8.40-1/2.
On the daily chart, a shooting star still looks like a menace to a further rise. This pattern formed around a key resistance at $8.45-1/4. It is thus more liable to indicate the completion of a wave c, or at least a partial completion.
However, the chance of an extended wave c has not been totally wiped out, as based on a bullish wedge, this wave may travel to $9.09-1/2. Only a break above $8.45-1/4 could confirm the extension.
Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.