SINGAPORE: CBOT December corn faces a support at $5.94-1/2 per bushel and only a break below it could trigger a further drop to $5.72-1/4, the Oct. 3 low.
The support is the 76.4 percent Fibonacci retracement on the rise from $5.72-1/4 to $6.66. It serves as the maximum low for a retracement from $6.66, if the uptrend from $5.72-1/4 will resume.
On the other hand, a fall below the support will indicate the uptrend will be totally reversed.
The bias is at the downside, as the fall from $6.66 could be a resumption of a preceding medium-term downtrend that started at the Aug. 29 high of $7.79.
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.
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