CBOT September wheat (WU26) may retrace into a range of $5.86-3/4 to $5.90-3/4 per bushel, to complete a pullback before rising again.
The contract has broken a falling trendline. The break signals a reversal of the downtrend from $6.26-1/2. The resistance at $5.99-1/2 triggered a pullback toward this line.
The pullback may end in the range of $5.86-3/4 to $5.90-3/4, to be followed by a resumed rise toward the peak of the wave b at $6.07-1/4.
On the daily chart, although a projection analysis marks a target zone of $5.50-1/2 to $5.63-1/4, wave pattern and the bullish divergence on the daily RSI indicate a completion of a five-wave cycle.
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.