SINGAPORE: CBOT March wheat is expected to fall to a support at $ 5.16 per bushel, as it has broken a support at $ 5.24.
Support was provided by the 50 percent Fibonacci projection level of an upward wave C, the third wave of a three-wave cycle from the Sept. 4 low of $ 4.72.
The next support will be at $ 5.16, the 38.2 percent level, which is strengthened by another similar one established by the lower channel line of a rising channel.
Most likely, the wave C will resume from around $ 5.16, as it is capable of traveling to $ 5.57. A break above $ 5.31-3/4 will lead to a gain to the 76.4 percent level at $ 5.41-1/4.