SINGAPORE: CBOT March wheat may break a resistance at $7.90-3/4 per bushel, and rise to $7.97-3/4, following the completion of a five-wave cycle.
The current bounce may consist of three small waves. So far, only the first wave has completed. The current wave b may end above a support at $7.82-3/4, to be reversed by a wave c.
The downtrend is expected to resume, upon the completion of the bounce, as the five-wave mode indicates the development of a short-term downtrend.
A break below $7.82-3/4 could cause a fall to $7.75-1/2. On the daily chart, a doji forming on Wednesday around a support at $7.80 indicates a further gain on Thursday.
A break below $7.80 could open the way towards $7.50-3/4.
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