SINGAPORE: CBOT December wheat may have found a support at $7.87-1/4 per bushel. It may resume its uptrend towards the resistance at $8.07.
The uptrend from $7.45 has been riding on a wave c, which has travelled to its 114.6% projection level of $8.07.
Chances are this wave may eventually extend into $8.19-3/4 to $8.32-3/4 range.
The structure of this wave suggests its partial completion. Its rapid advance well justifies the sharp fall from $8.07. A break below $7.86-1/4 could cause a fall to $7.78-3/4.
The fall could be attributed to a trendline resistance around $8.05-1/2 on the daily chart.
In consideration that the wave c from $6.77 may extend to $8.45-1/4, the current shallow correction could be short-lived.
Wheat may take a longer time to complete its correction if it fails again to break $8.05-1/2 by end of this week.
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