CBOT wheat may bounce into $6.90 to $6.95-3/4 range

By Reuters News

SINGAPORE, Oct 2 (Reuters) - CBOT December wheat may break a resistance at $6.83-3/4 per bushel and bounce into a range of $6.90 to $6.95-3/4.

A five-wave cycle from $7.36 may have completed. The completion was suggested by the wave structure and the market's stabilization around a support at $6.71.

Support is at $6.77, a break below could trigger a fall to $6.71. On the daily chart, the market seems to be trying to hover above a key support at $6.68-1/2, the 61.8% retracement of the uptrend from $5.90 to $7.94-1/2.

Generally, this retracement works as strong support, likely to trigger a decent bounce. Although the candlesticks have not formed a reversal pattern, the previous trading session's low of $6.70-3/4 is regarded as a bottom.

* Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own. His analyses are published exclusively on Workspace -- a platform provided by London Stock Exchange.

** 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.


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