The bounce followed the completion of a five-wave cycle from $5.32-3/4. The bullish divergence on the hourly RSI confirmed the completion of the cycle around a support at $4.64, the 200 percent projection level of a bigger wave C from $5.34-3/4.
The bounce triggered by the support consists of three small waves. So far, only two have completed. The third wave labeled c may have just started towards $4.77-1/4, which is pointed by a falling trendline.
On the daily chart, a projection analysis reveals a strong support at $4.69-3/4, the 61.8 percent projection level of a downward wave C from $5.44-1/4.
After piercing below this support, wheat failed to fall further to $4.52. The failure indicates that the break below $4.69-3/4 was false.
* 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. **