SINGAPORE: CBOT December wheat is expected to rise to $5.36 per bushel as it has broken a resistance at $5.22-3/4.
The resistance was formed around the 50 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. The next resistance will be at $5.36, the 61.8 percent level, a break above which will lead to a further gain to $5.52-1/2, the 76.4 percent level.
A correction from the current level could be limited to $5.22-3/4, now a strong support.
** 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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