SINGAPORE: CBOT March wheat may test a resistance at $7.85-3/4 a bushel, a break above could lead to a gain at $7.96-1/2.
The current rise has been precisely controlled by a set of retracements of the fall from $8.31-1/2.
After breaking above the resistance at $7.74-3/4, the contract may test the next resistance at $7.85-3/4.
An inverted head-and-shoulders has been confirmed as wheat pierced above $7.74-3/4, the neckline resistance.
The pattern indicates a target around $8.03-3/4.
EU 2021/22 soft wheat exports reach 16.92 million tons
A drop below $7.71-1/4 will make the pattern invalid. On the daily chart, wheat could be consolidating within a wide range from $7.41 to $8.35-1/2.
Following its several failures to break support at $7.41, the contract is biased to rise towards $8.35-1/2.
But first, it needs to overcome the immediate barrier at $7.80.
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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