SINGAPORE: CBOT December wheat faces resistance at $5.09-1/2 per bushel, and may hover below this level or retrace towards support at $4.93.
The resistance has been established around the 38.2 percent Fibonacci retracement on the downtrend from the Aug. 28 high of $5.79-1/4 to the Sept. 25 low of $4.66-1/4.
A consolidation triggered by the resistance could extend, consisting of three waves, with the current wave labelled b ending around $5.09-1/2. The third, the wave c, may approach $4.93, the 23.6 percent retracement.
A break above the resistance will open the way towards $5.22-3/4, the 50 percent retracement.
** Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.
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.
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