SINGAPORE: CBOT May corn may retest a support at $3.87-1/4 per bushel, as its correction from the March 8 high of $3.93-3/4 looks incomplete.
The correction was triggered by the 176.4 percent Fibonacci projection level of an upward wave C from $3.64-1/4. Three waves may make up the correction. So far, only two waves have completed. The third wave labelled c is yet to develop.
On the daily chart, a retracement analysis on the downtrend from $4.30 to $3.53-3/4 reveals that a strong resistance at $3.92, the 50 percent level, is also responsible for the correction.
This resistance may force corn to retrace towards $3.82-3/4. A break above $3.91-1/4 (first chart) could lead to a gain to limited to $3.93-3/4.
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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