CBOT wheat may seek support at $5.43-1/2

• The contract is riding on a wave c from $5.76-1/2, which may end around $5.43-1/2 or extend to $5.23, respectively its 100pc and 161.8pc projection levels.
• Given that the 76.4pc level of $5.51-1/4 triggered a decent bounce, wheat may stabilize around $5.43-1/2 and bounce towards $5.51-1/4.

The contract is riding on a wave c from $5.76-1/2, which may end around $5.43-1/2 or extend to $5.23, respectively its 100pc and 161.8pc projection levels. A head-and-shoulders has been confirmed, indicating a target around $5.30 as well.

Given that the 76.4pc level of $5.51-1/4 triggered a decent bounce, wheat may stabilize around $5.43-1/2 and bounce towards $5.51-1/4.

On the daily chart, a retracement analysis on the rise from $5.01-3/4 to $5.92-1/2 reveals a support at $5.47, the 50pc level, which is strengthened by another one established by a rising trendline.

These supports may work together with the one at $5.43-1/2 to temporarily hold the fall and trigger a bounce.