The resistance, as provided by the 23.6 percent Fibonacci retracement on the fall from the May 6 high of $7.65 to the Sept. 25 low of $4.66-1/4. The next resistance will be at $5.50, established by the upper channel line of a rising channel.
Indeed, the break above $5.36-3/4 has opened the way towards $5.80-1/4, the 38.2 percent level. A drop to $5.33 could signal the break was false, and wheat may then find a support at $5.23, established by the lower channel line.
** Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.
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