SINGAPORE: CBOT wheat may retest a resistance at $9.06-1/4 per bushel, a break above which could lead to a gain in $9.16-1/2 to $9.29-1/4 range.
The contract is riding on a presumed wave v, which is capable of travelling above $9.49-3/4.
A retracement analysis on the fall from this level reveals a resistance at $9.06-1/4, which temporarily stopped this wave.
Key support is at $8.83-1/4, a break below which will also violate a rising trendline. The low of $8.63 may be revisited thereafter.
On the daily chart, the bounce on Thursday was caused by a support at $8.70-1/4.
Rabi wheat production target set at 28.4 million tons
The spinning top forming on this day represents a hesitation of the market.
Either a strong rise towards $9.49 or a deep fall towards $8.21-3/4 would occur.
The bias could be towards the upside, as suggested by the readings on the hourly chart.
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