SINGAPORE: CBOT March corn may retrace to a support at $3.83-3/4 per bushel, as it failed to break a resistance at $3.85.
The resistance and the support are identified as the 50 percent and the 38.2 percent projection levels of a wave C from $3.67-1/4. Corn failed three times to overcome this barrier. The failures confirm a dissipation of the bullish momentum.
The correction from the Dec. 5 high of $3.86-3/4 consists of three waves. The current wave c may travel to the bottom of the wave a at $3.80, the Dec. 6 low.
On the daily chart, a retracement analysis on the downtrend from $4.37 to $3.54-3/4 suggests a much lower target at $3.74, as corn faces a strong resistance at $3.86, the 38.2 percent level. A break above it could open the way to $3.95-3/4.
* 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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