SINGAPORE: CBOT May wheat may gain more into a resistance zone of $7.12 to $7.16-3/4 per bushel, as suggested by its wave pattern. The bounce followed the reversal of a downtrend from the Feb. 14 high of $8.07-1/2. Five waves make up the trend.

The wave 4 ended at $7.12-3/4 which serves as a bounce target. After two corrections on Monday and Tuesday, the rise became sharper.

It seems the bounce has gained full momentum. Until extending to a major resistance such as $7.21-3/4, it may not slow.

Support is at $6.98, a break below could signal a correction towards a zone of $6.89-1/2 to $6.93-3/4. On the daily chart, wheat could be bouncing towards $7.31-1/4, after stabilizing around a key support of $6.75.

EU 2022/23 soft wheat exports at 21.54m tonnes

Theoretically, the bounce has much room to extend to $7.86-3/4.

Realistically, it is the target of $7.31-1/4 that works best.