The resistance is identified as the 50% retracement on the fall from $6.19 to $4.18-1/2. Wheat failed to overcome this barrier in its previous attempts.
It may succeed this time.
The correction triggered by the resistance looks more like a pullback towards a falling trendline. With wheat approaching this level again, the pullback could have completed. For a valid break above the resistance, wheat needs to stand firm above it.
On the hourly chart, another retracement analysis on the uptrend from $4.18-1/2 to $5.29 reveals a support at $5.12-3/4, a break below which could cause a loss to $5.02-3/4.
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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.
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