SINGAPORE: CBOT May corn remains neutral in a range of $3.57-$3.60 per bushel, and an escape could suggest a direction. The range is formed by Wednesday high and the 7 percent retracement on the downtrend from $3.80-3/4 to $3.55-1/4. A break below $3.57 could cause a loss to $3.55-1/4, while a break above $3.60 could lead to a gain into the range of $3.61-1/4 to $3.64-3/4.
The pattern from the March 29 low of $3.56 looks like an inverted head-and-shoulders, which indicates a reversal of the downtrend. It will be confirmed when corn goes above $3.64-3/4.
On the daily chart, this pattern seems to be a triangle, which has a bearish indication. It will be confirmed when corn breaks $3.56-1/4. Regardless of the direction, the following move could very strong.
Charts are not available in reports received in email box through "Alert". To get charts, use the news code of 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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