CBOT September wheat (WU26) may retest a support at $5.78-1/2 per bushel, a break below which could trigger a fall to $5.74.
A wave c from $6.07-1/4 looks incomplete. It is expected to travel to $5.74, the 100% projection level. The bounce triggered by the support may end around $5.86-3/4, a resistance jointly established by the 61.8% level and a falling trendline.
A break above $5.86-3/4 may lead to a gain into $5.90-3/4 to $5.94-1/2 range. On the daily chart, a projection analysis marks a target at $5.65-1/4, the 200% level, which is pointed by a short trendline as well.
The downtrend may end around $5.65-1/4, as a bullish divergence appeared on the daily RSI, suggesting an exhaustion of the trend and a forthcoming reversal.
** 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 - ondon 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.