CBOT corn may bounce into $3.45 to $3.48-3/4 range

SINGAPORE: CBOT Dec. corn may bounce more into a range of $3.45 to $3.48-3/4 per bushel, as it could have temporarily bottomed around a support at $3.33-3/4.

The support is provided by the 100 percent Fibonacci projection level of a downward wave c, the third wave of a three-wave cycle from the July 14 high of $3.80.

The bounce from the July 22 low of $3.33-1/4 and the bullish divergence on the hourly RSI suggests the wave c could have ended. The contract has briefly pierced above a resistance at $3.40-3/4, the 76.4 percent projection level, it may have a better chance of testing the 61.8 percent level at $3.45.

A further drop from the current level could be limited to $3.37-3/4, the 86.4 percent level.