SINGAPORE: CBOT March wheat may retrace towards a support at $7.45-1/2, as it failed to break a resistance at $7.55-3/4 per bushel. The failure suggests the extended consolidation within the range of $7.45-1/2 to $7.55-3/4.

The consolidation may have adopted a flat mode, which consists of three waves that are roughly equal.

A break above $7.55-3/4 may open the way towards $7.65-3/4.

On the daily chart, wheat faces a resistance at $7.57-1/4, which is working together with the one at $7.55-3/4 to stop the rise.

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A correction is highly likely, which is expected to be roughly symmetrical to the rise from the Jan. 10 low of $7.20-1/2. Under this expectation, wheat may drop to $7.29-1/4 before rising.