• The support is provided by the 23.6pc retracement on the downtrend from $5.28 to $4.93-3/4.
  • The stabilization around this support signals a completion of the pullback towards a falling trendline.

SINGAPORE: CBOT July wheat may break a resistance at $5.06-3/4 per bushel and rise towards $5.10-3/4, as it has stabilized around a support at $5.01-3/4.

The support is provided by the 23.6pc retracement on the downtrend from $5.28 to $4.93-3/4.

The stabilization around this support signals a completion of the pullback towards a falling trendline.

A break below $5.01-3/4 could cause a fall into the range of $4.96 to $4.98-3/4.

On the daily chart, the support at $5.04 still holds, which is established at the 123.6pc projection level of a downtrend from $5.61-1/2.

As long as wheat remains above this support, it may rise towards $5.15.