TECHNICALS-CBOT wheat may retest support at $6.35-3/4

SINGAPORE, May 5 (Reuters) - CBOT July wheat WN26 may retest support at $6.35-3/4 per bushel, following its failure to break resistance at $6.49-1/4.

The market may still be undergoing a consolidation within a range of $6.35-3/4 to $6.49-1/4. This assumption explains why it failed to break $6.49-1/4.

Based on the strong reaction of the market to $6.49-1/4, it might be falling toward $6.35-3/4. A break above $6.49-1/4 may lead to a gain into $6.53-3/4 to $6.59-1/2 range.

On the daily chart, only a break above $6.54-1/4 could confirm a continuation of the uptrend from $5.78-1/2. A failure would be followed by either a sideways move below this barrier or a deep correction into $6.07-1/4 to $6.25.

Given that an evening star formed between April 28 and April 30, the bias might be toward the downside.

Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.

No information in this analysis should be considered as being business, financial, or legal advice. Each reader should consult their own professional or other advisers for business, financial, or legal advice regarding the products mentioned in the analyses.

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