SINGAPORE: CBOT May wheat may retest a support at $6.42 per bushel, a break below which could cause a fall to $6.35-3/4.

The contract is riding on a wave c from $6.68-3/4. This wave does not seem to end around its 61.8% projection level of $6.42. Instead, it may extend to $6.25-3/4.

Despite its complex structure, this wave c is unfolding within a falling channel. As long as wheat remains in the channel, the target of $6.25-3/4 will be intact.

The wave c is a part of a bigger wave C, which started at $6.88-3/4. The wave C is heading towards $6.21-1/2, its 100% projection level.

On the daily chart, the contract has briefly pierced below a support at $6.45-1/2 three times.

Under the repeated attacks by bears, this support may be broken on Thursday.

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