Wednesday, October 6, 2010

Wheat Technicals from Reuters

SINGAPORE, Oct 6 (Reuters) - CBOT December wheat would rebound to trade between $6.86-¾   and $7.00-¼   per bushel as a five-wave cycle ended around Monday's low of $6.43-1/2.

A Fibonacci retracement analysis on the fall from $7.57 to $6.43-½   reveals that the rebound may extend gains to a range formed by the 38.2 percent and 50 percent levels.


Its retracement will be limited to the wave "3" trough at $6.50-3/4, but a fall below $6.43-½   will be very bearish, setting a target of $6.27-3/8.
 

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