The bounce consists of three waves. The first wave labelled (a) and the third wave labelled (b) are roughly equal in length. This equality confirms the completion of the wave (c).
Further indication on the completion is given by the failure of the wave (c) to extend above the resistance at $5.15-1/2, the 23.6 percent retracement of the downtrend from $6.13 to $4.85-1/2.
Theoretically, wheat may retrace to $4.90, the bottom of the wave (b). A more realistic target could be $4.94-1/4. A break above $5.15-1/2 may lead to a gain into the range of $5.19-1/2 to $5.34.
* Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.
No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses. **