CBOT wheat may retest support at $5.66-3/4

• The bounce was triggered by the support at $5.60-1/2, the 100pc projection level of an upward wave C from $5.16-1/4.
• Based on this observation, a retracement analysis on the rise from $5.01-3/4 to $5.92-1/2 reveals a target zone of $5.47 to $5.57-3/4.

The bounce was triggered by the support at $5.60-1/2, the 100pc projection level of an upward wave C from $5.16-1/4. It is regarded as a pullback towards a rising trendline. Eventually, wheat could fall below $5.59-1/2.

Resistance is at $5.77-1/4, only a break above which could confirm a continuation of the uptrend towards $5.97-1/4.

On the daily chart, the current correction looks similar to the one from the Oct. 21, 2019 high of $5.39-1/4, which corrected about 50pc of the preceding rise.

Based on this observation, a retracement analysis on the rise from $5.01-3/4 to $5.92-1/2 reveals a target zone of $5.47 to $5.57-3/4, which is also suggested by a rising channel.