Tuesday, 03 November 2015 12:50
SINGAPORE: CBOT March wheat is expected to test a support at $ 5.08-3/4 per bushel, a break below which could cause a loss to the next support at $ 5.02.
These supports are identified respectively as the 38.2 percent and the 23.6 percent Fibonacci retracements on the fall from the Oct. 7 high of $ 5.38 to the Oct. 20 low of $ 4.91.
It is hard to categorize the sharp drop on Monday, which could be a resumption of the preceding downtrend from $ 5.38 or simply a correction against the uptrend from $ 4.91.
Resistance is at $ 5.14-1/2, the 50 percent level, a break above which could lead to a gain to the 61.8 percent level at $ 5.20.