SINGAPORE: CBOT wheat may revisit its April 27 high of $7.69-1/2 per bushel, as its uptrend has resumed.
The trend is riding on a wave 5, which is expected to travel far above the peak of the wave 3 at $7.69-1/2. The wave 5 observes closely a set of retracements of the uptrend from $6.25-3/4 to $7.69-1/2.
Support is at $7.35-1/2, a break below which could will not only open the way towards $7.14-1/2, but also suggest an extension of the correction from $7.69-1/2.
On the daily chart, the uptrend from $5.92-1/4 has continued. It may extend to $7.78-1/4, the 161.8% projection level of a longer trend from $5.70-1/2.
A study on the first month continuous chart suggests a 14% gain from the current level. When applied to the July contract, this percentage indicates a target of $8.50.
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