The support is provided by the 38.2 percent retracement of the downtrend from $5.38-1/2 to $5.01-1/4. A small five-wave cycle from $5.01-1/2 ended around the resistance at $5.24-1/4.
The completion of this cycle has led to a correction which may at least extend to $5.15-1/4. On the daily chart, wheat is struggling around a resistance at $5.23, the 61.8 percent projection level of an upward wave C from $5.01-1/4.
The resistance is strengthened by another similar one established by a falling trendline. Wheat may find it much easier to fall than to overcome these barriers and rise.
A break above $5.24-1/4 could lead to a gain to $5.29-1/2 (first chart).
* 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.