SINGAPORE: A bullish target at $5.50 per bushel has been established for CBOT Dec. wheat, as it has cleared a resistance at $5.36-3/4.
The resistance, as provided by the 23.6 percent Fibonacci retracement on the fall from the May 6 high of $7.65 to the Sept. 25 low of $4.66-1/4. The next resistance will be at $5.50, established by the upper channel line of a rising channel.
Indeed, the break above $5.36-3/4 has opened the way towards $5.80-1/4, the 38.2 percent level. A drop to $5.33 could signal the break was false, and wheat may then find a support at $5.23, established by the lower channel line.
** 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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