The range is formed by the 38.2 percent and the 61.8 percent projection levels of an upward wave C from $5.08. Wheat may consolidate further in this range, following its second failure to break $5.16-3/4.
A break above $5.22-1/4 could lead to a gain to $5.25-3/4, while a break below $5.16-3/4 will not only cause a loss to $5.13-1/4, but also confirm a head-and-shoulders, which suggests a more bearish target around $5.08.
Signals are also mixed on the daily chart, as wheat is stuck in a slightly wider range of $5.14-1/2 to $5.23, formed by the 38.2 percent and the 61.8 percent projection levels of an upward wave (C) from $5.01-1/4. One more daily candlestick could make the signals clearer.
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** 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.