SINGAPORE: CBOT December wheat may retest a support at $8.12 per bushel, a break below which could cause a drop into $7.99-1/4 to $8.07 range.
A five-wave cycle from $7.62-1/2 has completed, triggering the deep correction on Tuesday. The cycle is expected to be further reversed.
Before falling more, wheat may bounce moderately to a resistance at $8.19-3/4, as it managed to stabilize around $8.12.
On the daily chart, the break above $8.22-1/4 proved to be false. The bearish engulfing pattern forming between Tuesday and Wednesday suggests a further fall on Wednesday.
The fall may be shallow, probably limited to a trendline support at $8.00, as this fall could be classified as a pullback towards this line.
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