CBOT wheat may gain more to $5.26-3/4

• The first month contract has broken two falling trendlines and a resistance at $5.01-3/4.
• The resistance is identified as the 50pc projection level of an upward wave C from $4.50-1/2.

The resistance is identified as the 50pc projection level of an upward wave C from $4.50-1/2. The next resistance will be at $5.26-3/4.

There are three smaller waves making up the first part of the wave C. The third wave labelled c is unfolding towards its 100pc projection level at $5.18-1/4.

A moderate correction may be triggered by this level.

The correction could be limited to $5.12-14, now a strong support.

A study on the first month continuous chart suggests an extension of the wave C towards $5.74.

The first month contract has broken two falling trendlines and a resistance at $5.01-3/4, the 14.6pc retracement of the downtrend from $13.34-1/2 to $3.59-1/2, chances are it may surge to $5.89-1/2.