The support and the resistance are identified as the 86.4 percent and the 76.4 percent projection levels of a downward wave (C) from $5.31-1/4. At its full capacity, this wave may travel to $4.94. The bounce triggered by the support could be limited to $5.08.
This wave (C) seems to have temporarily ended around $4.99, as a result, wheat may at least hover above this level for one or two days, even if it fails to climb to $5.08.
On the daily chart, the pattern from $5.38-1/2 looks like a flag, which suggests a much lower target around $4.80 that is pointed by a falling trendline.
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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. **