SINGAPORE: CBOT wheat may fall to $7.80 per bushel, following its failure to break a resistance at $8.24.
The failure could have triggered a pullback towards a falling trendline, which establishes a support around $7.80.
Wheat is expected to resume its rally upon the completion of the pullback, as the bullish divergence on the hourly RSI does not seem to have been fully discounted.
A break above $8.24 could lead to a gain into $8.42-3/4 to $8.60-1/4 range.
On the daily chart, the final part of a downtrend from $12.85 was shaped into a wedge, which proved to be a bottom pattern.
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The trend is still slowly reversing. The bullish divergence on RSI indicates a further gain.