Tuesday, October 12, 2010

Wheat Technicals from Reuters

SINGAPORE, Oct. 12 (Reuters) - CBOT wheat's December contract would resume the rally on Tuesday, and return to the Monday high at $7.39-¾   per bushel, as strong support is observed around $7.03.

A Fibonacci retracement analysis on the wave "3" rise from $6.57 to $7.39-¾   reveals a support zone between $6.98-½   and $7.08 - the 38.2 percent and 50 percent levels.

What enforces the zone is a descending trendline support at $7.00, and together, they make it hard for a further slide.

Support is at $7.03, a fall below which would extend to $6.88-½   - the 61.8 percent Fibonacci retracement level.

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