CBOT September wheat (WU26) may climb into a range of $6.14-1/4 to $6.19-1/2 per bushel, as it has cleared a resistance at $6.06-1/2.
The break above this barrier has opened the way toward $6.26-3/4, where the downtrend started. A realistic target zone is from $6.14-1/4 to $6.19-1/2, formed by the 76.4% and the 86.4% levels.
A break below $6.06-1/2, now a support, may trigger a drop to $6.00-1/2. On the daily chart, a five-wave cycle from $7.00 might have ended, as suggested by the bullish divergence on the daily MACD and the strong bounce from $5.74.
The peak of the wave 4 around $6.25-1/4 serves as a target. The likely subsequent move after the market reaches $6.25-1/4 would be a fall toward $5.84, as suggested by the symmetrical nature of the chart.
* Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own. His analyses are exclusively published on the Workspace platform - a London Stock Exchange product.
** 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.