Monday, 27 July 2015 13:29
SINGAPORE: CBOT Sept. wheat may break a support at $ 5.06 per bushel and then fall to the June 19 low of $ 4.88-1/4, as indicated by a Fibonacci retracement analysis.
The support is provided by the 86.4 percent Fibonacci retracement on the rise $ 4.88-1/4 to the June 30 high of $ 6.18, working as the last barrier towards $ 4.88-1/4.
The uptrend from the May 5 low of $ 4.69-1/4 has adopted a corrective wave structure, suggesting the low at $ 4.88-1/4 could be eventually revisited. Strategically, the target will be confirmed when wheat drops below $ 5.03.