TECHNICALS-CBOT wheat may retest resistance at $6.76-3/4

SINGAPORE, May 13 (Reuters) - CBOT July wheat WN26 may retest a resistance at $6.76-3/4 per bushel, a break above which would lead to a gain to $6.99.

A projection analysis based on the April 10 low of $5.77-3/4 roughly reveals a target at $6.99, the 100% projection level of a wave C from $6.05, as this wave has travelled far above the 61.8% level of $6.63.

The current shallow correction is expected to end in the support zone of $6.63 to $6.71-1/2. A break below $6.63 may trigger a drop to $6.52.

On the daily chart, a projection analysis on a wave C from $5.77-1/2 reveals a brief piercing of the prices above the 76.4% level of $6.72-1/2.

This wave is expected to extend to $7.01-3/4, as it has travelled far above its 61.8% level of $6.54-1/4.

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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