SINGAPORE: CBOT July wheat is expected to retest a support at $5.94-3/4 per bushel, a break below which could lead to a gain into $5.80-1/2 to $5.89-1/4 range.
The bounce triggered by the support at $5.94-3/4 has been so deeply reversed that a continuation of the downtrend from $6.64-1/4 looks convincing.
The target of $5.20 pointed by a bearish pennant seems far away.
The near-term target zone of $5.80-1/2 to $5.94-3/4 could be more realistic.
Resistance is at $6.11-3/4, a break above which may lead to a gain into $6.18 to $6.26-3/4 range.
CBOT wheat may test resistance of $6.26-3/4
On the daily chart, the stabilization around a support at $6.14-1/4 has been quickly ruined by a drop on Wednesday. Bears are still in tight control of the market.
They may not take very long to finally break $5.99-1/4 and drive the price towards $5.61-3/4, as pointed by a falling channel.
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