• Wheat reversed from support zone
• Further gains are likely
Wheat recently reversed up from the support zone lying between the round support level 5.000 (which also reversed the price at the end of May) and the 38.2% Fibonacci retracement of the previous sharp upward impulse from the end of March.
The upward reversal from this support zone created the daily Japanese candlesticks reversal pattern Morning Star which marked the start of the active short-term impulse wave (i) – which belongs to the longer-term impulse waves 3 and (3).
Wheat is expected to rise further and re-test the next strong resistance level 5.5470 (which stopped the previous impulse wave (i) at the end of May).