SINGAPORE: CBOT May wheat may revisit the recent low of $6.61-1/4 per bushel, as a bounce from this level has been deeply reversed.
The reversal, along with the three-wave structure of the bounce, confirms the completion of the consolidation from the March 22 low of $6.54.
The consolidation takes the shape of a wedge, which looks like a bearish continuation pattern, as it appeared after a downtrend.
Resistance is at $6.78-1/2, a break above which could lead to a gain to $6.84.
On the daily chart, wheat remains sideways in the range of $6.54 to $7.31-1/4.
CBOT wheat may retest resistance at $7.04-1/2
The hope for a bottom formation around $6.75-1/2 is vanishing, following the drop on Wednesday.
A fall below the April 14 low of $6.61-1/4 could confirm the continuation of the downtrend towards $6.06-3/4.