CBOT wheat may fall to $7.48
- A break above $7.73-1/2 may lead to a gain into $7.81-1/2 to $7.89-1/4 range
SINGAPORE: CBOT September wheat may break a support at $7.58-3/4 per bushel and fall to $7.48, following its failure to break a resistance at $7.73-1/2.
The resistance is identified as the 100% projection level of a wave (c) from $6.65-1/2.
This wave could either end around this barrier or extend far above it.
European Euronext wheat futures rise
Regardless of the final ending point of this wave, a decent correction may have been triggered by the resistance. Since this resistance is strengthened by another one at $7.67-1/2, the May 7 high, the current correction could extend to $7.48.
A break above $7.73-1/2 may lead to a gain into $7.81-1/2 to $7.89-1/4 range.
On the daily chart, a projection analysis on an upward wave C from $6.10-1/4 reveals a similar resistance at $7.73, which also helps temporarily stop the rise.
The uptrend may resume, when the current correction completes, as it is riding on a powerful wave C, which is expected to eventually break $7.73 and travel towards $8.74.
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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