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CBOT wheat may test resistance at $6.76-3/4

  • A retracement analysis reveals a break above $6.62-3/4. The contract may climb into a range of $6.74-1/4 to $6.84.
Published February 24, 2021

SINGAPORE: CBOT March wheat may test a resistance at $6.76-3/4 per bushel, a break above which could open the way towards $6.93.

The contract has cleared a key resistance at $6.66-1/2. The next resistance will be at $6.76-3/4, which is the last barrier towards $6.93.

After rising above $6.66-1/2, wheat is highly likely to revisit the high of $6.93. A break below $6.66-1/2, now a support, may cause a fall to $6.58-1/2.

On the daily chart, a triangle has been confirmed as a bullish continuation pattern. It could be a part of a pennant that developed from $5.65-1/2. The pennant indicates an aggressive target of $7.54, which looks too high to be realistic.

A retracement analysis reveals a break above $6.62-3/4. The contract may climb into a range of $6.74-1/4 to $6.84.

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.

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