CBOT corn to drop to $6.34-1/4 a bushel

Tuesday, 07 February 2012 10:48

SINGAPORE: CBOT March corn will fall to $6.34-1/4 per bushel, as a correction that started at the Feb. 1 high of $6.50 has not completed.

The correction was triggered by a strong resistance at $6.47, the 61.8 percent Fibonacci projection level of an upward wave "C" which started at the January low of $5.92-1/2.

A total of three waves, labelled "a-b-c", will make up the correction, with the wave "c" progressing towards $6.34-1/4, the trough of the wave "a".

Resistance is at $6.50, a break above which will open the way towards $6.59-1/2, the 76.4 percent projection level.

No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.