SINGAPORE: CBOT wheat may fall to $7.65-1/2 per bushel, as it failed to break a resistance at $8.01-3/4.

The failure, along with the subsequent fall, confirms an extension of the short downtrend from the Aug. 11 high of $8.20-3/4.

Given that wheat has been tightly controlled by a set of projection levels on the downtrend from $11.07-3/4, it may fall towards $7.65-1/2.

A break above $8.01-3/4 could lead to a gain to $8.24.

On the daily chart, the contract seems to consolidating within a range of $7.52 to $8.29-3/4.

Wheat rebounds as demand stirs

Even though the consolidation is considered as a part of bottom formation, it may prove to be a bearish continuation pattern as well.

Regardless of the following direction after wheat gets out of the range, it may fall towards $7.52 first.