SINGAPORE: CBOT July wheat may retrace towards $6.30-1/2 per bushel, as it failed to break a resistance at $6.47. The failure marks the completion of the first round of the bounce from $6.03-3/4.

The bounce seems to be against the drop from $7.17-1/4, as revealed by a retracement analysis.

This analysis suggests a correction target of $6.30-1/2.

Whether the fall could end around this level is still subject to a further observation. A break above $6.47 could lead to a gain to $6.60-1/2.

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On the daily chart, the big white candlestick on Tuesday confirms a reversal of the short downtrend from the April 18 high of $7.17-1/4.

Only that the rise looks too rapid to sustain. Wheat is expected to fall moderately before bouncing further.