SINGAPORE: CBOT March wheat may test a support at $8.04-1/2 per bushel, a break below which could cause a fall to $7.97-3/4.
The contract is riding on a wave c, which lost its momentum around a resistance at $8.22-1/2.
This wave failed twice to break the resistance.
The failures indicates the formation of a temporary top.
A break above $8.15-3/4 could lead to a gain into $8.22-1/2 to $8.26-3/4 range.
Immediate support is at $8.08-3/4, a break below which could open the way toward a zone of $7.97-3/4 to $8.04-1/2.
On the daily chart, the spinning top on Dec. 23 around a resistance at $8.16 confirmed an exhaustion of the rise. A correction is due.
The correction could be deep enough to extend close to $7.80, which will be symmetrical to the rise from the Nov. 30 low of $7.82-1/2.
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