The support is provided by the 38.2% retracement of the uptrend from $4.27-1/4 to $5.57-1/4. A break below this barrier could open the way towards $4.92-1/4.
The support triggered a bounce towards the June 19 low of $5.19, a break above which could signal the extension of the bounce towards $5.26-1/2.
On the daily chart, a retracement analysis on the downtrend from $6.24-1/4 to $4.27-1/4 reveals a target at $5.02-1/2, the 38.2% level.
Wheat is expected to stabilize around $5.02-1/2 or start a decent bounce from this level. A break below $5.02-1/2 could open the way towards $4.73-1/2.
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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. **