SINGAPORE: CBOT wheat may test a resistance at $8.01-3/4 per bushel, a break above which could lead to a gain to $8.24.
The contract managed to stabilise around a support of $7.65-1/2.
The bullish divergence on the hourly RSI suggests an exhaustion of the downtrend and a decent bounce to occur.
Wheat ticks higher, Ukrainian exports limit gains; corn dips
Even though it is not 100% certain that wheat would rise, strategically, it is much safer to target $8.01-3/4 to $8.24 range than to target $7.36-1/2. Only a fall below $7.54 could be extended to $7.36-1/2.
On the daily chart, the downtrend from $12.85 is developing within a wedge, which looks like a bottom pattern.