SINGAPORE: CBOT wheat may retest a resistance at $12.77-3/4 per bushel, a break above which could lead to a gain to $12.98-1/2 to $13.19-1/4 range.

The contract is riding on a powerful wave 3, which is expected to travel to $13.19-1/4, as it has almost extended to the 138.2% projection level of $12.77-3/4.

The resistance at $12.77-3/4 is strengthened by another one at $12.78-1/4, the March 8 high. That explains why the contract failed to break $12.77-3/4 in its first attempt.

Support is at $12.36, a break below which may be followed by a shallow fall to $12.22-3/4, near the top of a huge gap, which works as a strong support as well.

Russian wheat prices up, export pace slows

On the daily chart, another wave count suggests the progress of a wave 3 from $10.34-1/4, which is travelling towards $13.18-1/2, near $13.19-1/4 (hourly chart).

This wave has a fierce character.

As a result, the correction triggered by $12.77 could be brief and shallow.