CBOT wheat may stabilize around $6.49-3/4 and rise

CBOT July wheat (WN26) may stabilize around support of $6.49-3/4 per bushel and bounce toward the $6.61-$6.68 range. The support is identified as the 61.8% retracement of the uptrend from $6.31-3/4 to $6.79. It is strengthened by a similar support established by a rising trendline. A break below $6.49-3/4 could trigger a fall into the $6.38 to $6.42-3/4 range. On the daily chart, a wave C from $5.77-1/2 looks incomplete. It is expected to travel to $7.01-3/4. The main challenge with the current correction from $6.79-1/2 lies in its depth. The correction may extend to $6.25 if it turns out to be the third part of a drop from the May 14 high of $6.88-1/4, or stabilize around $6.54-1/4, if it is only a shallow fall against the rise from $6.31-1/2.