Technicals: CBOT wheat may test resistance at $7.38-1/4
TECHNICALS-CBOT wheat may test resistance at $7.38-1/4 SINGAPORE, Sept 14 (Reuters) - CBOT December wheat WZ26 may test resistance at $7.38-1/4 per bushel, a break above which could lead to a gain into the $7.47-1/2 to $7.53-1/4 range.
The market is stabilizing around support at $7.23, identified as the 61.8% projection level of wave c from $7.62-1/2.
This wave may either end around the support or extend to $6.98-1/2. Considering that wave c could be broken down into five smaller waves, it might be complete.
The peak of wave iv around $7.38-1/4 serves as the initial target. A break below $7.23 would confirm the extension of wave c toward $6.98-1/2.
The break will be valid when the market falls to $7.18. On the daily chart, a rising channel suggests limited downside, as the channel line establishes support around $7.05, forming a support zone with the higher support of $7.13-3/4 to stop a further fall.
* Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own. His analyses are published exclusively on the Workspace platform, a London Stock Exchange product.
** No information in this analysis should be considered as being business, financial, or legal advice. Each reader should consult their own professional or other advisers for business, financial, or legal advice regarding the products mentioned in the analyses.
(Reporting by Wang Tao; Editing by Rashmi Aich)
((wang.tao@tr.com; +65 6973 8364/9188 4196 (Whatsapp))