SINGAPORE: CBOT July wheat may test a resistance of $6.26-3/4 per bushel, a break above which could lead to a gain into $6.34 to $6.41 range.
Steep and sharp as it is, the rise from the Tuesday low of $5.94-1/4 is still classified as a bounce against the drop from $6.64-1/4.
The difficulty is to pin an ending point of the bounce. Until a convincing signal appears to indicate the completion, the rule has to be following the bounce in patience.
Support is fixed at $6.11-3/4, a break below which could trigger a drop into $5.94-3/4 to $6.03-3/4 range.
Wheat futures inch lower on profit-taking; soybeans, corn climb
The drop would be deep enough to confirm a resumption of the downtrend.
On the daily chart, the contract managed to stabilise around a support at $6.14-1/4 and started a bounce.
This could be the final retreat of bulls before they launch a decisive attack on this barrier.
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