CBOT wheat may retest resistance at $5.63-3/4

• The downtrend from the Jan. 22 high of $5.92-1/2 has been developing within a falling wedge, which turned out to be a bullish continuation pattern.
• The pullback towards this wedge has completed after wheat recovered from the Feb. 3 low of $5.46-1/2.

The downtrend from the Jan. 22 high of $5.92-1/2 has been developing within a falling wedge, which turned out to be a bullish continuation pattern.

The pullback towards this wedge has completed after wheat recovered from the Feb. 3 low of $5.46-1/2.

The contact may have resumed its rise toward $5.76-1/2. Support is at $5.56, a break below which could cause a fall to $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 break above $5.57-3/4, the 38.2% level. The break opened the way towards $5.71.