SINGAPORE: CBOT March wheat is expected to test the support of $7.72-1/4 per bushel, a break below could open the way towards $7.54-3/4. The bounce triggered by the support seems to have ended around a resistance at $8.00-3/4.

The downtrend from $9.20-3/4 remains intact within a falling channel.

The trend consists of three waves.

The current wave (c) is capable of travelling to $7.58-3/4.

Resistance is at $7.92-1/4, a break above which could signal the extension of the bounce towards $8.00-3/4 to $8.09 range.

On the daily chart, the current downtrend is regarded as a part of the preceding trend from $12.73-1/4.

Country has ‘sufficient’ wheat, cabinet told

Driven by a wave C, the trend may extend to $6.44-3/4. A realistic target zone is from $7.26-1/2 to $7.54-3/4, which will be confirmed when the contract breaks $7.72-1/4.