CBOT corn may retest resistance at $3.63

SINGAPORE: CBOT Dec. corn may retest a resistance at $3.63 per bushel, a break above which could lead to a gain into a range of $3.67-$3.71.

For a chart: http://tmsnrt.rs/29JWK62

The bounce from the July 6 low of $3.46 has not completed, as it is against the downtrend from the June 17 high of $4.49 and may consist of three waves. The third wave labelled c has just started.

This wave is capable of travelling to $3.71, its 61.8 percent Fibonacci projection level. At its full capacity, it may extend to $3.84, the 100 percent level. The 38.2 percent at $3.63 provides a temporary resistance, which blocks the way towards $3.67, the 50 percent level.

Support is at $3.58, a break below which could cause a loss to the 14.6 percent level at $3.55.