SINGAPORE: CBOT December corn may break a support at $3.79-1/4 per bushel and fall towards the zone of $3.68-3/4 to $3.73-3/4.
The contract failed twice to break a strong resistance at $3.89-3/4, the 50 percent retracement on the downtrend from $4.29-1/2 to $3.50-1/4.
The two failures led to the formation of a small double-top, which will be confirmed when corn breaks below $3.79-1/4, the 23.6 percent retracement on the uptrend from $3.50-1/4 to $3.88-1/2.
The pattern suggests a target around $3.68-3/4.
On the daily chart, a bearish engulfing pattern and a shooting star formed side by side. Both of them are bearish reversal patterns. Together, they have a more bearish indication.
Only a break above $3.89-3/4 could confirm the extension of the uptrend towards $3.99.
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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