These supports are identified as the 138.2 percent and the 161.8 percent projection levels of a downward wave c from $4.77-1/2. This wave is capable of travelling to $4.36.
The bounce triggered by the support at $4.42-1/4 has been almost reversed. The reversal signals a continuation of the wave c.
On the daily chart, wheat is expected to retest a support at $4.41, the 7 percent retracement on the downtrend from $6.30-1/4 to $4.27. It may break the support this time, following its failure on Tuesday.
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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. **