SINGAPORE: CBOT wheat may retest a support at $7.65-1/2 per bushel, a break below which could open the way towards $7.07-1/4.
The bounce triggered by the support looks weaker than expected, as it failed twice to extend above a resistance at $8.24.
The failures became very disappointing, in view of the bullish divergence on the hourly RSI.
The contract was supposed to have a much better performance.
Egypt’s GASC seeks to buy wheat in direct talks
A break above $8.24 could lead to a gain into $8.42-3/4 to $8.60-1/4 range.
On the daily chart, the slow gain from the July 15 low of $7.65-3/4 is classified as a pullback towards a rising trendline.
With the spinning top forming on Tuesday, wheat is expected to resume its downtrend.