The range is formed by the 38.2 percent and the 61.8 percent projection levels of an uptrend from $4.90. The trend is a part of a wedge from $4.85-1/2, which could have completed, as suggested by its five-wave structure and the deep fall from the Nov. 13 high of $5.20-3/4.
The wedge has been more or less confirmed as a bearish pattern, suggesting a target around $4.90, which will strategically be valid when wheat breaks $5.01-1/4. A break above $5.08 could lead to a gain into the range of $5.12-1/2 to $5.19-1/2.
* 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.