SINGAPORE: CBOT December corn still targets $3.68-3/4 per bushel, following its failure to break a resistance at $3.74-1/4.
The resistance is established at the 38.2 percent projection level of an upward wave C from $3.60-1/2. Corn has been hovering below this barrier for a few days. It is more likely to fall to $3.68-3/4 than to break above $3.74-1/4 and rise more.
The wave C consists of five smaller waves. The third wave labeled 3 is unfolding. It has a fierce character and is expected to eventually travel above $3.74-1/4.
A break below $3.68-3/4 will signal the current wave count is incorrect. A bearish target at $3.65-3/4 will be established accordingly. A break above $3.74-1/4 could lead to a gain to $3.78-1/2.
Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.
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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