CBOT March wheat may approach a support at $5.15-1/4 per bushel again, as suggested by its wave pattern and a retracement analysis. The support is provided by the 38.2 percent retracement of the downtrend from $5.38-1/2 to $5.01-1/4. A small five-wave cycle from $5.01-1/2 ended around the resistance at $5.24-1/4.

The completion of this cycle has led to a correction which may at least extend to $5.15-1/4. On the daily chart, wheat is struggling around a resistance at $5.23, the 61.8 percent projection level of an upward wave C from $5.01-1/4.

The resistance is strengthened by another similar one established by a falling trend line. Wheat may find it much easier to fall than to overcome these barriers and rise. A break above $5.24-1/4 could lead to a gain to $5.29-1/2 (first chart).

Copyright Reuters, 2019