CBOT September wheat (WU26) may hover below a resistance at $6.06-1/2 for one or two days or retrace toward $5.94-1/4, as suggested by a retracement analysis.
The resistance is identified as the 61.8% retracement of the downtrend from $6.26-3/4 to $5.74. It triggered a correction which may match the preceding bounce from $5.93-1/2 in either duration or magnitude.
A break above $6.06-1/2 could lead to a gain into a range $6.14-1/4 to $6.19-1/2.
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 contract may climb toward the peak of the wave 4 around $6.25-1/4.
** 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.