SINGAPORE: CBOT March wheat may revisit its Dec. 30 high of $7.99 per bushel since it has climbed so close to this level. Indeed, the contract narrowly missed this target on Monday. It could be just a matter of time that this high is reached.

A more prominent question is which level the contact could rise to after its surge above $7.99. By assuming that a wave C is unfolding, a Fibonacci projection analysis is able to mark a target zone of $8.04-3/4 to $8.15-1/2.

The support at $7.87 looks too near to be workable. The lower support at $7.78-1/2 is used to evaluate whether the uptrend from $7.42 has reversed.

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On the daily chart, the current rise is presumed to be against the downtrend from $9.62. A retracement analysis on the trend reveals a target of $8.07-3/4.

Once the contract stands firm above $8.07-3/4, it is likely to extend gains into $8.37-1/4 to $8.66-1/2 range.