The resistance is identified as the 50% retracement of the downtrend from $6.19 to $4.18-1/2. The next resistance will be at $5.42-1/4.
The strength of the rally from $4.18-1/2 and the break above a falling trendline confirm a reversal of the downtrend from $6.19. A fall below $5.13 could signal a failure to break the resistance at $5.18-3/4.
On the hourly chart, wheat is riding on a fierce wave C, which is expected to travel to $5.40-1/2, its 100% projection level. Support is at $5.12 (close to $5.13), a break below which may cause a loss into the range of $4.94-1/2 to $5.03-1/4.
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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. **