SINGAPORE: CBOT December wheat may fall into a range of $7.33 to $7.39 per bushel, as it failed twice to break a resistance at $7.66.
The resistance is identified as the 61.8% projection level of an upward wave C from $7.12-3/4, which may either complete around $7.66 or extend a lot to $7.99-1/4.
The behaviour of the contract around $7.66 suggests a completion of this wave or its first part. In either case, a further correction is expected.
On the daily chart, wheat failed to break a similar resistance at $7.61. The failure triggered a correction towards $7.41-1/4 or $7.31, a support provided by a rising trendline.
The uptrend will be deemed intact, if wheat could maintain above the trendline. A break above $7.61, which seems unlikely over the next one or two days, may lead to a gain into the range of $7.80-3/4 to $8.05-1/2.
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