SINGAPORE: CBOT March corn is expected to break a resistance at $3.85 per bushel, and rise towards the next resistance at $3.89-1/4, driven by a wave C.
These resistances are identified as the 50 percent and the 61.8 percent projection levels of the wave C from $3.67-1/4. This wave is capable of travelling into a range of $3.94-1/2 to $4.03.
Corn has briefly pierced above $3.85, it has a good chance of overcoming this barrier and rising more. Immediate support will be at $3.82-3/4, a break below which would indicate the resistance at $3.85 remains intact and the contract may slide below $3.81.
On the daily chart, corn faces a strong resistance at $3.86, the 38.2 percent retracement of the downtrend from $4.37 to $3.54-3/4. A break above it could lead to a gain to $3.96 while a failure may cause a loss towards $3.74.
* 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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