CBOT September wheat will be neutral so long as it remains in a range of $6.56-1/2 to $6.71-1/2 per bushel. The range has been formed by the July 18 low of $6.56-1/2 and the 38.2 percent Fibonacci retrenchment on the fall from the July 11 high of $6.93 to this low. It will be difficult to conclude that the rebound from $6.56-1/2 has ended until wheat gets out of the range.
A drop below $6.56-1/2 will make it clear that the preceding downtrend from $6.93 has resumed towards $6.50, a target pointed by the lower channel line of a falling channel. A bullish target at $6.79, the 61.8 percent retrenchment, will be established if wheat could stand firm above $6.70-1/2.
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