Technicals-CBOT wheat may rise toward $6.95-1/2
WEAT•CBOT wheat technical outlook
SINGAPORE, Aug 18 (Reuters) - CBOT September wheat WU26 may rise toward $6.95-1/2 per bushel, as it has more or less broken a resistance at $6.79-1/4.
The market appears to have regained sufficient bullish momentum after correcting from the Aug. 16 high of $6.80. A projection analysis on the wave C from $6.27 reveals the next resistance at $6.95-1/2.
Another projection analysis marks more fine-tuned resistance levels. The nearest is at $6.86, the 200% level. Support is at $6.71-1/4, a break below which could trigger a fall into a range of $6.59-1/4 to $6.63-1/2.
On the daily chart, the contract has broken a resistance at $6.73-3/4; it is heading toward $6.97-1/4, riding on a wave C. Considering that this wave has not completed at the 61.8% level of $6.73-3/4, it may eventually extend to $7.35-1/4.
The break above $6.73-3/4 will be considered false if the market closes below it on Tuesday.
