The support is provided by the 61.8 percent retracement of the uptrend from $5.01-1/4 to $5.31-1/4. A sharp bounce triggered by this support has been deeply reversed. The reversal signals a continuation of the downtrend from $5.31-1/4.
It is not very clear if this support could trigger a bounce again. Given that the support is strengthened by another one established by a rising trendline, a weaker bounce may occur, which may be limited to $5.16-1/4.
A break above $5.19-3/4 could lead to a gain to $5.24. On the daily chart, wheat is poised to break $5.14-1/2 and fall to $5.09-1/2.
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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.