SINGAPORE, Oct. 13 (Reuters) - The CBOT wheat December contract <WZ0> could rise to Monday's high of $7.39-¾ per bushel as it has resumed its rally during the previous trading session.
The wave "4" correction is believed to have been completed as a small double-bottom was formed around $7.03, and this is a typical reversal pattern for wheat.
The rally could be so explosive that it may surpass $7.39-¾ with ease, to even penetrate into a range of $7.70-$7.80.
Support is at $7.03, a fall below which would extend the loss to $6.88-1/2, the 61.8 percent Fibonacci retracement level on the rise from $6.57 to $7.39-3/4.
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