Tuesday, October 5, 2010

Wheat Technicals from Reuters

SINGAPORE, Oct 5 (Reuters) - A bearish target of $6.27-½    per bushel for the CBOT wheat December contract <WZ0> has been temporarily aborted, as a rebound is likely to push the price towards $6.80.

A relabeling on the wave pattern shows that a five-wave cycle could have ended around $6.43-1/2, a low touched on Monday.

A bullish divergence that has formed on the RSI indicator is another signal suggesting a possible sharp rebound besides the wave pattern.

The rebound towards $6.80 will be confirmed when wheat rises above $6.54, but before that the downtrend towards $6.27-½   may continue. 

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