These resistances are identified respectively as the 23.6 percent and the 38.2 percent projection levels of an upward wave C from $5.13-1/4. This wave is capable of travelling into the range of $5.27-1/2 to $5.36-1/2.
On the daily chart, wheat may have more or less completed a consolidation below a strong resistance at $5.23, the 61.8 percent projection level of an upward wave C from $5.01-1/4.
A break above $5.23 will confirm not only an extension of the wave C towards $5.36-1/2, but also a reversal of the downtrend from $6.27-1/2.
Only a fall below $5.13-1/4 (first chart) could signal the continuation of the trend from $5.38-1/2.
* Charts are not available in reports received in email box through "Alert". To get charts, use the news code of TECH/C to retrieve the original reports.
** 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.