SINGAPORE: CBOT July wheat is expected to retest a resistance at $6.28-3/4 per bushel, a break above which could lead to a gain to $6.39-3/4.

The rise from the Thursday low of $6.11-1/4, though very moderate, has been showing its close relation to the preceding uptrend from the May 31 low of $5.73-1/4. The rise could most likely be riding on a wave c, which is capable of travelling into a range of $6.48-1/2 to $6.57-1/4.

A break below $6.16-1/4 may open the way towards the $6.01-3/4 to $6.10-1/2 range. On the daily chart, both a wave C and a small wave c may have completed in the support zone of $5.61-3/4 to $5.83-1/2.

Paris wheat lower as weather fears ease

The bullish divergence on MACD suggests a deep reversal of these waves.

The contract may retest a resistance at $6.36-3/4, as it has completed a correction triggered by this barrier.