SINGAPORE: CBOT May wheat may drop into a range of $6.80-1/2 to $6.89-1/2 per bushel, having completed a bounce from the March 10 low of $6.61. The completion was confirmed by a break below a rising trendline.

A pullback towards the line finished as well. Over the next few days, wheat may drop towards the bottom of the wave b around $6.89. The nature of the current drop remains unknown. It could be a part of the bounce from $6.61, or a continuation of the downtrend from the Feb. 14 high of $8.07-1/2.

The closer the drop is to $6.61-3/4, the less likely the bounce extends. A break above $6.98 could lead to a gain into $7.03-1/4 to $7.12 range.

On the daily chart, the contract is falling towards the nearest support of $6.75-1/2. Trending signals will remain neutral until wheat gets out of the range.

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It is not very clear if the support could hold under the second attack by bears.

It is supposed to be stronger than the one at $7.31-1/4. Thus, the support is likely to trigger another bounce.