SINGAPORE: CBOT May wheat may retest a resistance at $7.04-1/2 per bushel, a break above which could open the way towards $7.14-1/2.
The resistance is identified as the 61.8% projection level of a wave C from $6.61-1/4.
This wave may either end around $7.04-1/2 or extend a lot to $7.31-1/4.
A total of five smaller waves are expected to make up the wave C. So far, only four waves have unfolded.
The current wave e may travel to or above $7.07.
Immediate support is at $6.94-1/2, a break below which could open the way towards $6.86-3/4 to $6.90-3/4 range.
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On the daily chart, wheat may consolidate further in the range of $6.54 to $7.31-1/4, as a temporary bottom seems to be forming.
The bottom will be confirmed when wheat breaks above $7.31-1/4.
A fall below the April 14 low of $6.61-1/4 could confirm the continuation of the downtrend towards $6.06-3/4.