SINGAPORE: CBOT March wheat may rise to $7.74-3/4 a bushel due to the completion of a five-wave cycle from $8.31-1/2.

The completion was suggested by the bounce from the Feb. 3 low of $7.40. A retracement analysis on the cycle reveals its close relation to the bounce.

The analysis marks a resistance at $7.61-1/2, which is strengthened by a similar one established by a falling trendline.

Strategically, the target of $7.74-3/4 will be confirmed when wheat breaks $7.61-1/2.

A further drop from the current level may be limited to $7.53-1/4.

On the daily chart, following the formation of a hammer on Thursday, wheat climbed above a resistance at $7.50-3/4.

This bullish reversal candlestick has been confirmed.

Wheat may rise towards the resistance zone of $7.72-1/2 to $7.80.

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