SINGAPORE: CBOT September wheat may retest a support at $6.13 per bushel, a break below which may open the way towards $5.83-3/4.
The deep fall on Tuesday confirmed an extension of a wave C from $7.08-1/2. This wave is expected to travel to $5.83-3/4, as it did not end around a key support at $6.31-1/4.
The gap forming on Tuesday is unlikely to be filled, as it serves a strong resistance zone. On the daily chart, the contract broke a support at $6.35-1/2 and a rising trendline.
The break opened the way towards $6.04-1/2. The current bounce is regarded as a pullback towards this trendline. The pullback is expected to complete around $6.35-1/2.
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