SINGAPORE: A bearish target at $4.76-1/4 per bushel remains unchanged for CBOT May corn, as it may have peaked around resistance at $5.14-1/2.
Resistance is provided by the 38.2 percent Fibonacci retracement on the fall from the Sept. 6, 2012 high of $6.76-1/2 to the Jan. 10 low of $4.14-1/2. A five-wave cycle rising from $4.14-1/2 happened to end around this level.
A correction seems to have been triggered, towards the 23.6 percent retracement at $4.76-1/4. Even though the cycle may eventually extend, the extension may not occur until the current correction finishes.
A break above $5.14-1/2 may only cause a limited gain to $5.22, the 61.8 percent Fibonacci retracement of the fall from the July 19, 2013 high of $5.88-1/2 to $4.14-1/2.
The views expressed are his own.
No information in this analysis should be considered as being business, financial or legal advice.
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