SINGAPORE: CBOT May wheat may rise to a range of $7.05-1/2 to $7.13 per bushel, as it may have completed a correction from the March 29 high of $7.24. The contract managed to stabilize around a support of $6.79-3/4.
The stabilization, along with the following strong recovery of the price, suggests the completion of the drop.
It is not very clear if the contract could climb to $7.25. However, wheat may have a better chance of extending to the zone of $7.25 to $7.37-1/4 once its breaks above $7.13.
The immediate support is at $6.93-1/4, a break below which could open the way towards the $6.79-3/4 to $6.85-3/4 range.
CBOT wheat may fall into $6.73-1/2 to $6.79-3/4 range
Signals on the daily chart look a bit neutral as wheat is stuck in a range of $6.75-1/2 to $7.31-1/4.
An escape from this range will point at a clear direction.
Source: Brecorder