SINGAPORE: CBOT March wheat may retest a support at $6.38-1/4 per bushel, a break below could cause a fall to $6.30-1/4.

The deep fall on Wednesday suggests a continuation of the downtrend from the Jan. 15 high of $6.93, or an extension of the consolidation in the range of $6.30-1/4 to $6.62-1/2.

A projection analysis on a presumed wave C from $6.72-3/4 reveals a support at $6.38-1/4, the 50% level, which triggered a moderate bounce.

This wave has a complex structure, consisting of three smaller waves.

The current wave c could be unfolding. A break above $6.46-1/4 may open the way towards $6.56-1/2.

On the daily chart, a bearish engulfing pattern formed between Tuesday and Wednesday. It signals a further drop towards $6.29-1/4.

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