CBOT wheat may retest support at $6.38-1/4
- This wave has a complex structure, consisting of three smaller waves.
SINGAPORE: CBOT March wheat may retest a support at $6.38-1/4 per bushel, a break below could cause a fall to $6.30-1/4.
The deep fall on Wednesday suggests a continuation of the downtrend from the Jan. 15 high of $6.93, or an extension of the consolidation in the range of $6.30-1/4 to $6.62-1/2.
A projection analysis on a presumed wave C from $6.72-3/4 reveals a support at $6.38-1/4, the 50% level, which triggered a moderate bounce.
This wave has a complex structure, consisting of three smaller waves.
The current wave c could be unfolding. A break above $6.46-1/4 may open the way towards $6.56-1/2.
On the daily chart, a bearish engulfing pattern formed between Tuesday and Wednesday. It signals a further drop towards $6.29-1/4.
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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