SINGAPORE: CBOT March wheat may rise into a range of $8.04-1/2 to $8.12-3/4 per bushel, driven by a wave c.
This wave has briefly pierced above its 138.2% projection level of $7.97-3/4. It has a better chance of extending to $8.04-1/2.
A retracement analysis on the downtrend from $8.74-3/4 reveals a higher target of $8.12-3/4, the 50% level. However, wheat is expected to pull back towards $7.98-1/4 when it rises to $8.04-1/2.
Support is at $7.90-3/4, a break below which may cause a drop to $7.82-3/4, as pointed by a rising trendline. On the daily chart, wheat has broken a resistance at $7.80.
The break opened the way towards $8.16. After a few days' struggle, the contract successfully climbed above a rising trendline. This bullish move is much in the favour of the uptrend, which probably has resumed.
An estimated trendline resistance at $7.90 may be a limit to the pullback. A piercing above the line could most likely be followed by a drop.
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