CBOT Wheat May Retest Support at $4.58-1/4
Category: Grains
(Business Recorder) – CBOT September wheat may retest a support at $4.58-1/4 per bushel, a break below which could cause a fall to $4.49-1/2.
The support is identified as the 123.6% projection level of a downtrend from $5.31-1/2. There is little clue to the ending point of this trend. A wild speculation is the trend may extend into the range of $4.35-1/2 to $4.49-1/2.
A projection analysis on the downtrend from $4.80 suggests a target around $4.40-1/4, the 100% projection level. Resistance is at $4.63-1/2, a break above which could lead to a gain to $4.68.
A retracement analysis on the daily chart indicates a temporary stabilization around $4.57-3/4, the 76.4% level. Given that this set of retracements have been working as poor supports, wheat may briefly pierce below this level before starting a bounce.
