CBOT September wheat (WU26) may retrace to $6.06-1/2 per bushel, following its failure to break resistance at $6.14-1/4.
Both a retracement analysis and a trendline suggest a further correction toward $6.06-1/2. The bearish divergence on the hourly RSI may be discounted more as well.
A break above $6.14-1/4 could lead to a gain into $6.19-1/2 to $6.26-3/4 range. On the daily chart, a projection analysis reveals a resistance at $6.17-1/4, which is working with the one at $6.14-1/4 (hourly chart) to stop the rise.
A five-wave cycle from $7.00 might have ended. The peak of the wave 4 around $6.25-1/4 serves as a target. Based on this reading, the subsequent correction could be shallow, to be followed by a resumption of the rise toward $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.