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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