Tuesday, 28 July 2015 12:58
SINGAPORE: CBOT September wheat may stabilise around support at $ 5.06 per bushel and then bounce towards $ 5.18-3/4 as indicated by a Fibonacci retracement analysis.
Support is provided by the 86.4 percent Fibonacci retracement on the rise from the June 19 low of $ 4.88-1/4 to the June 30 high of $ 6.18. It is strengthened by a stronger one established by a trendline rising from the May 5 low of $ 4.69-1/4.
Wheat’s failure to break support zone formed by these two supports suggests a bounce is due.
A former target at $ 4.88-1/4, the June 19 low, has been aborted, and will only be resumed when wheat falls to $ 5.00.