SINGAPORE: CBOT wheat may test a resistance at $7.23-3/4 per bushel, a break above which could open the way towards $7.51-1/2.

The contract seems to have stabilised around a support at $6.89-1/2, the 138.2% projection level of a downward wave c. The stabilisation suggests a completion of this wave.

Immediate support is at $7.00, a break below which could open the way towards $6.79 to $6.89-1/2 range. On the daily chart, wheat found a strong support at $6.99-3/4.

After briefly piercing below this level twice, it managed to climb above this support.

The message is clear that the support holds well and may trigger another bounce towards $7.25-1/4.

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Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own. No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.