CBOT wheat to seek support at $4.97-3/4

03 Mar, 2015

SINGAPORE: CBOT May wheat may find a support at $4.97-3/4 per bushel and rebound to $5.02-3/4, as indicated by a Fibonacci retracement analysis.

The drop from the March 2 high of $5.18-3/4 could be too sharp to sustain. A Fibonacci retracement analysis on the fall from the Feb. 17 high of $5.45 to the Feb. 26 low of $4.89-3/4 reveals the immediate support at $4.97-3/4, the 14.6 percent level.

A break below this support will open the way towards $4.89-3/4, while a break above $5.02-3/4 could trigger a further gain to $5.10-3/4.

Copyright Reuters, 2015

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