SINGAPORE: CBOT December wheat may bounce to $7.38-1/4, as it managed to stabilise around a support at $7.30-1/4 per bushel.
The stabilisation suggests the completion of a wave c, which is expected to be partially or totally reversed.
A break above $7.38-1/4 could lead to a gain to $7.43-1/2, while a break below $7.30-1/4 could confirm the continuation of the extension of the wave c towards $7.22-1/4.
Signals on the daily chart look a bit conflicting with that on the hourly chart, as wheat broke below a support at $7.41-1/4.
The break increases the chance of a fall toward $7.16-1/2. However, wheat seems somehow lost its momentum around a short rising trendline. Instead of falling towards $7.16-1/2, the contract is more likely to rise towards $7.41-1/4.
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