SINGAPORE: CBOT March corn may edge up to a zone of $3.79 to $3.80-3/4 per bushel, as indicated by a projection analysis.
The surge on Tuesday is surprisingly tricky. Its strength indicates the progress of an upward wave c from $3.71-3/4.
This wave is presumed to be the third part of a flat developing from $3.71.
The flat has a characteristic that its three component waves are roughly equal in length.
That means the wave c could travel to $3.80-3/4, which is pointed by a falling trendline as well.
A break above $3.80-3/4, which is less expected, could lead to a gain to $3.83-3/4. A projection analysis on the daily chart reveals the same target at $3.80-3/4, the 38.2 percent projection level of an upward wave C.
Support is at $3.76-1/4 (first chart), a break below which could cause a loss to $3.74-1/2.
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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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