SINGAPORE: CBOT March wheat may retest a resistance at $7.62 per bushel, a break above which could lead to a gain to $7.68.

The contract has broken a falling trendline. The break signals a reversal of the downtrend.

The moderate fall triggered by the resistance at $7.62 is classified as a pullback towards a falling trendline.

The pullback may end around either $7.54-3/4 or $7.49-3/4.

Thanks to the strong rise on Jan. 7, the bullish momentum is expected to maintain for one or two days, thus pushing prices higher.

A break below $7.49-3/4 could cause a fall $7.35-1/2 to $7.43. On the daily chart, the contract managed to hover above a support at $7.50-3/4. The false break below this level suggests a possible reversal of the downtrend from $8.74-3/4.

Even if the trend has not reversed, the contract may still bounce to $7.80.

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