SINGAPORE: CBOT wheat is poised to break a resistance at $7.99-3/4 per bushel and rise to $8.17-1/4, following its failure on Tuesday.
After a brief correction, wheat has managed to remain above a falling trendline.
The correction could be thus classified as a pullback. The violation of the trendline indicates a reversal of the downtrend from $8.45-3/4.
Strategically, the reversal will be confirmed when wheat breaks $7.99-3/4.
A break below $7.85-3/4 may be followed by a drop towards $7.71-1/2.
On the daily chart, wheat has broken a resistance at $7.77-1/4, it is expected to rise towards $8.13-1/2.
EU 2022/23 soft wheat exports at 3.75MT
The contract has also climbed above a falling trendline and remained above it for a few days.
The downtrend from the May 17 high of $12.85 may have turned around.
It will be further reversed, as indicated by the bullish divergence on the daily RSI.