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SINGAPORE: CBOT May wheat may break a support of $7.06-1/2 per bushel and fall into a range of $6.89-1/2 to $6.98. The contract has fallen below an expanding wedge, which has a slim chance to extend.
It has been more or less confirmed as a bearish continuation pattern.
Even though it is too aggressive to target a level suggested by this wedge, the current wave 3 could easily travel to $6.89-1/2.
Resistance is at $7.16-3/4, a break above could lead to a gain into $7.25-3/4 to $7.34-1/4 range. On the daily chart, the contract is riding on a wave C from $9.66-3/4.
EU wheat futures close to 1-month low
This wave may travel to $6.75-1/2 very soon. It may only be disrupted by a pullback towards $7.31-1/4, which is yet to appear.