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CBOT Dec wheat to retrace to $7.31/bushel
SINGAPORE : CBOT Dec wheat will fall to $7.31 per bushel, a low touched on Aug 18, as a rebound that started at the July
SINGAPORE: CBOT Dec wheat will fall to $7.31 per bushel, a low touched on Aug 18, as a rebound that started at the July 1 low of $6.39 has completed.
The rebound has adopted an "a-b-c" corrective wave mode, with the wave "c" having travelled approximately the same distance as the wave "a", as indicated by a Fibonacci projection analysis.
A Fibonacci retracement on the fall from $9.23-1/4 to $6.39 also reveals a strong resistance at $7.81, the 50 percent level, which helped trigger the current fall.
A rise above $7.74 will violate the bearish outlook.
Copyright Reuters, 2011
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