CBOT wheat to retrace, may break support at $6.87-1/2 and fall more

Wednesday, 09 October 2013

SINGAPORE: CBOT December wheat may retest a support at $6.87-1/2 per bushel, with a good chance of breaking below this level and falling further towards $6.77-3/4.

The support is provided by the 123.6 percent Fibonacci projection level of an upward wave C, which started at the Sept. 5 low of $6.36-3/4. The next support will be at $6.77-3/4, the 100 percent projection level.

A rising wedge that formed between Sept. 30 and Oct. 8 could have completed, triggering the current drop towards $6.87-1/2.

A rise above $6.99-3/4 will confirm the extension of the wave C towards $7.09, the 176.4 percent projection level.

No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses. Courtesy: Reuters

Published in ZaraiMedia.com