This is the third wave of a three-wave cycle from the June 27 high of $5.57-1/4. It is capable of travelling into a range of $4.65-1/4 to $4.85-3/4, formed by its 100% and the 61.8% projection levels.

Strategically, this target range will only be confirmed when wheat breaks the immediate support at $4.98-1/4. Resistance is at $5.06-1/4, a break above which could lead to a gain into the range of $5.11-$5.19.

On the daily chart, wheat has broken a support at $5.02-1/2, the 38.2% retracement of the downtrend from $6.24-1/4 to $4.27-1/4. The break opened the way towards $4.73-1/2.

However, before falling to $4.73-1/2, wheat has to overcome the barrier at $4.92-1/4, the 50% retracement of the uptrend from $4.27-1/4 to $5.57-1/4.

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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. **