Friday, 21 August 2015 12:15
SINGAPORE: CBOT September wheat may retrace to $ 5.01-1/2, as it failed to break a resistance at $ 5.05-1/2 per bushel.
The resistance is at the 23.6 percent Fibonacci retracement on the rise from the Aug. 12 low of $ 4.84 to the Aug. 14 high of $ 5.12-1/4. It has caused a correction towards the 38.2 percent level at $ 5.01-1/2. The lower channel line of a rising channel suggests a similar target.
The wave pattern indicates that wheat is riding on a wave C, which may eventually travel to $ 5.12-1/4. The following drop could thus be limited to $ 5.01-1/2. A break above $ 5.04-1/2 will confirm the extension of the wave C towards $ 5.12-1/4.
