CBOT wheat to retrace to $7.54-1/4 a bushel

SINGAPORE: CBOT July wheat may fail a resistance at $7.77-1/2 and retrace to $7.54-1/4 per bushel as a double-top has been reconsidered.

The rebound from the June 1 low of $7.54-1/4 could be a pullback towards the neckline resistance of the double-top at $7.77-1/2, as after two trading sessions of struggle, wheat is still unable to clear this barrier.

A rise above $7.85 will confirm a high-low bottom, which points to $8.00, with an upside potential extended to $8.28-3/4, the high touched on May 26.

Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.

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Copyright Reuters, 2011