Monday, 03 August 2015 11:51
SINGAPORE: CBOT September wheat still targets $ 4.89-1/4 per bushel, as indicated by a Fibonacci retracement analysis.
The analysis reveals wheat has broken a support at $ 5.04-1/4, the 76.4 percent retracement on the uptrend from the May 5 low of $ 4.69-1/4 to the June 30 high of $ 6.18.
In the meantime, a trendline rising from $ 4.69-1/4 has been broken, indicating the uptrend from this low could be reversed eventually. The pullback towards the trendline has completed and the downtrend resumed.
A break above $ 5.04-1/4, now a resistance, could lead to a gain to $ 5.12-1/2, the July 29 high.
