SINGAPORE: CBOT July wheat may test a resistance at $5.00-3/4 per bushel, with a good chance of breaking above this level and rising more towards the next resistance at $5.08.
The resistances is identified as the 61.8 percent and 38.2 percent projection level of a wave c from $5.20-1/4. This wave has ended, following its failure to break a key support at $4.88-3/4.
Either the downtrend from $5.38-1/2 has reversed or a decent bounce is developing. The circled part on the chart looks like a small inverted head-and-shoulders, which has been confirmed, suggesting a target at $5.08.
A correction may be limited to $4.96.
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Source: Brecorder