CBOT corn may retest support at $3.50-3/4

SINGAPORE: CBOT March corn may retest a support at $3.50-3/4 per bushel, as suggested by its wave pattern and a Fibonacci projection analysis.

The support is provided by the 76.4 percent Fibonacci projection level of a downward wave c, the third wave of a three-wave cycle from $3.60-1/2.

This wave is capable of travelling to $3.49. A triangle has been confirmed as a bearish continuation pattern, suggesting a target around $3.49-1/4 as well.

The bounce from the Dec. 7 low of $3.50-1/2 is regarded as the second pullback towards the lower trendline of the triangle. Resistance is at $3.53, a break above which could lead to a gain into the range of $3.53-3/4 to $3.55.