Tuesday, 04 August 2015 13:43
SINGAPORE: CBOT Sept. wheat is biased to break a resistance at $ 5.04-1/4 per bushel and rise towards a higher resistance at $ 5.26, as it has failed to break a support at $ 4.89-1/4.
The two resistances and support are identified respectively as the 76.4 percent, the 61.8 percent and the 86.4 percent Fibonacci retracements on the uptrend from the May 5 low of $ 4.69-1/4 to the June 30 high of $ 6.18.
The drop from the July 14 high of $ 5.82-1/2 could be too linear to sustain and is due to be significantly reversed. Strategically, a rise to $ 5.06 may confirm a break above $ 5.04-1/4.
