SINGAPORE: CBOT September wheat faces a resistance at $7.73-1/2 per bushel, and it may hover below this level or retest a support at $7.58-3/4.

The resistance is identified as the 100% projection level of a wave (c) from $6.65-1/2. It is strengthened by another one at $7.67-1/2, the May 7 high.

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Together, these resistances are likely to cause a correction towards $7.48. A break above $7.73-1/2 may lead to a gain into $7.81-1/2 to $7.89-1/4 range.

On the daily chart, a projection analysis on an upward wave C from $6.10-1/4 reveals a similar resistance at $7.73, which is working together with the two on the hourly chart to temporarily stop the rise.

Based on its strong momentum, the wave C is expected to eventually break $7.73 and rise to $8.74.

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