Monday, 16 March 2015 13:43
SINGAPORE: CBOT May wheat is expected to break support at $ 4.94 per bushel and fall further to $ 4.88, driven by a wave C.
This is the third of a three-wave cycle that developed from the Feb. 17 high of $ 5.45. It may eventually travel to $ 4.46-3/4, its 100 percent Fibonacci projection level, over the next one or two weeks.
A Fibonacci retracement analysis on the fall from the Feb. 17 high of $ 5.45 to the March 6 low of $ 4.78-1/4 reveals immediate support at $ 4.94, the 23.6 percent level, which temporarily blocks the way towards the 14.6 percent level at $ 4.88.
Resistance is at $ 5.03-1/2, the 38.2 percent retracement, a break above which will lead to a further gain to $ 5.11-1/2, the 50 percent level.
Copyright Reuters, 2015
