SINGAPORE: CBOT May corn may retest a support at $3.63-1/2 per bushel, a break below which could cause a loss to $3.58.
The support is provided by the 138.2 percent projection levels of the wave C, the part of which from the March 4 high of $3.77-3/4 consists of five smaller waves.
The bounce triggered by the support has been driven by a wave 4, which may end around $3.66-3/4, to be then reversed by a downward wave 5.
On the daily chart, the bounce is regarded as a pullback towards a resistance at $3.67-3/4, the 38.2 percent projection level of a downward wave C from $3.97-3/4. This wave is capable of travelling to $3.49-1/2.
A further gain may be limited to $3.68-3/4 (first chart).
* Charts are not available in reports received in email box through "Alert". To get charts, use the news code of TECH/C to retrieve the original reports.
** 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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