Thursday, October 7, 2010

Wheat Technicals from Reuters

SINGAPORE, Oct.7 (Reuters) - CBOT wheat's December contract <WZ0> should rise to $6.84 per bushel as a wave "c" or wave "3" is progressing.

The upward wave is expected to travel the same length with wave "1" or wave "a", to arrive at $6.84 - the 100 percent Fibonacci projection level - or it could travel to the 161.8 percent level at $7.02.

An inverted head-and-shoulders pattern could be forming, confirmation of which will be when wheat rises above $6.75, and a bullish target at $7.07 would then be established.

A fall below minor support at $6.55 would extend to $6.45. 

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