SINGAPORE: CBOT March wheat may retest a support at $7.70 per bushel, a break below could open the way towards $7.61-1/4.
The fall on Tuesday was so deep that it strongly suggests a reversal of the uptrend from $7.23-1/2.
The trend consists of three waves.
The wave b ended around $7.41-1/4, which serves as a target.
A retracement analysis on the trend reveals a support at $7.70, which temporarily stopped the fall.
As long as the contract remains in the range of $7.70 to $7.81, it is likely to drop towards a zone of $7.52-1/4 to $7.61-1/4.
A break above $7.81 may lead to a gain to $7.87-3/4.
On the daily chart, a bullish target of $8.22 has been aborted.
It will only be resumed when wheat breaks $7.98-3/4.
The short uptrend from $7.23-1/2 seems to be slowly turning around.