SINGAPORE: CBOT May corn may retest a resistance at $3.50-3/4 per bushel, as it could have completed a downtrend from the March 25 high of $3.80-3/4.
The reversal of the trend was indicated by the fierce bounce from the Thursday low of $3.42-1/4. The reversal looks more reliable as it occurred around a key support at $3.41-1/2, the 100 percent projection level of a downward wave c from $3.66-1/4.
Indeed, the wave c may have completed. A break below $3.47-1/4 could cause a loss limited to the range of $3.41-1/2 to $3.44-3/4.
On the daily chart, corn has found a support at $3.41, the 138.2 percent projection level of a downward wave (c) from $3.98-1/2. It may bounce more towards the lower trendline of a wedge around $3.57.
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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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