CBOT wheat may retest support $8.78-1/2

SINGAPORE: CBOT wheat may retest a support at $8.78-1/2 per bushel, with a good chance of breaking below this level and falling into $8.54-1/4 to $8.69-1/4 range.

The fall still observes a set of projection levels on a wave C from $8.54-1/4.

This wave could be alternately counted as a wave (5), the final wave of the uptrend from $7.43-1/4.

The wave structure of the trend, along with the depth of the fall from the Sept. 30 high of $9.45-3/4, confirms a reversal of the trend.

Over the next few days, wheat is expected to slide towards the bottom of the wave (4) around $8.54-1/4.

CBOT wheat may fall into $8.78-1/2 to $8.93-1/2 range

A break above $8.93-1/2 may lead to a gain to $9.05-3/4.

On the daily chart, wheat is testing a support at $8.70-1/4.

A break could open the way towards $7.80-3/4 to $8.21-3/4 range.

Market seems unlikely to stabilise around $8.70-1/4 and extend its uptrend towards $9.49, as the bearish momentum on Thursday looks pretty strong.