SINGAPORE: CBOT December wheat may retest a support at $7.30-1/4 per bushel, a break below which could cause a fall to $7.22-1/4.
The contract is riding on a wave c, which has briefly travelled below its 100% projection level of $7.35-1/2.
Chances are it may extend to $7.22-1/4.
The support at $7.30-1/4 temporarily holds, which is both the 123.6% projection level and the 38.2% retracement of the uptrend from $6.77 to $7.63-1/2.
The minor bounce triggered by $7.30-1/4 could end below $7.38-1/4.
On the daily chart, wheat retreated below a support at $7.41-1/4. Chances are it may fall more toward $7.16-1/2.
The uptrend is expected to resume when the current correction ends above $7.16-1/2, as it is driven by a wave C, which could travel into the $7.80-3/4 to $8.45-1/4 range.
Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.