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SINGAPORE: CBOT March wheat is expected to keep falling to $6.81-3/4 per bushel, driven by an extended wave 5.

Based on the length of the fall from the Jan. 31 high of $7.91 to the Feb. 13 low of $7.22-1/2 and the Feb. 8 high of $7.70-3/4, a Fibonacci projection on the target of the wave 5 points to $6.81-3/4, the 200 percent level.

Strategically, the target will be confirmed when a support at $6.98-1/2, the 161.8 percent level, is broken.

No information in this analysis should be considered as being business, financial or legal advice. 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.

Copyright Reuters, 2013

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