The support is provided by 38.2% retracement of the downtrend from $6.24-1/4 to $4.27-1/4. The bounce triggered by this support signals a completion of the correction from the June 27 high of $5.57-1/4.
It is not very clear if the uptrend from $4.27-1/4 has resumed. The clear part is wheat may bounce to $5.25-3/4 or at least hover above $5.02-1/2 for one or two days.
A break below $5.02-1/2 may not necessarily cause a fall to $4.73-1/2, as the contract may seek a support at $4.94, the June 6 low.
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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. **