SINGAPORE: CBOT Dec. corn may break a support at $3.37-3/4 per bushel, and fall towards the next support at $3.33-3/4, as suggested by a triangle and a Fibonacci projection analysis.
The bounce from the July 22 low of $3.33-1/4 has taken the shape of a triangle, which looks like a bearish continuation pattern, to be followed by another round of drop.
The preceding downtrend from $3.63-3/4, an hourly chart high touched on July 18, has been driven by a wave (c), the third wave of a three-wave cycle from the July 14 high of $3.80.
The Fibonacci projection analysis on the target of this wave reveals a support at $3.37-3/4, the 86.4 percent level, which blocks the way towards the 100 percent level at $3.33-3/4.
A rise above the upper trendline of the triangle at $3.43 could be extended to $3.45, the 61.8 percent level.
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