CBOT wheat may retest support at $6.84-1/4

SINGAPORE: CBOT May wheat may retest a support at $6.84-1/4 per bushel, a break below could open the way towards $6.75-3/4. A five-wave cycle is near completion.

The difficulty is to fix its ending point, as the contract is riding on a wave 5, the bottom of which is generally very hard to forecast.

Only a rise above $6.98 could confirm the completion.

However, one thing for certain is the downtrend has become exhausted, while the bullish divergence keeps on building on hourly RSI.

A break above $6.89-1/2 could lead to a gain into $6.93-3/4 to $6.98 range. On the daily chart, a projection analysis reveals a target of $6.75-1/2, which is close to $6.75-3/4 (hourly chart).

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It would be quite safe to assume that a bottom may form around $6.75.