Thursday, October 14, 2010

Wheat Technicals from Reuters

SINGAPORE, Oct. 14 (Reuters) - CBOT wheat's December contract <WZ0> may retrace further towards $6.88 after failing to establish an uptrend during the previous trading session.

The retracement has zigzagged down within a descending wedge, which is expected to complete around $6.88 - the 61.8 percent Fibonacci retracement level on the rise from $6.57 to $7.39-3/4.

The wave pattern indicates a possible wave "4" or "3-2" retracement, both to be followed by a rise towards $7.39-3/4.

But wheat needs to clear a resistance at $7.22 to confirm an uptrend has resumed as a failure to do so only indicates a continuation of the wedge formation.

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