The resistance is identified as the 38.2 percent retracement of the uptrend from $5.01-1/4 to $5.31-1/4. The next resistance will be at $5.24.
A double-bottom developed around $5.12-1/2. Once confirmed, it will suggest a target around $5.29. Both of this target and the target at $5.24 will be aborted, should wheat fall below a rising trendline which provides a support around $5.18.
On the daily chart, the contract seems to have managed to stay within a rising channel. However, it is doubtful if the contact could climb to $5.30, a level pointed by the channel line, as the candlestick pattern from Feb. 7 looks like a falling three method.
The pattern will be confirmed when wheat falls below the Feb. 12 low of $5.14-1/2.
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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. **