SINGAPORE: CBOT July corn may retest a support at $4.06-1/4 per bushel, a break below which could cause a loss to $3.99.
The support is identified as the 61.8pc retracement on the uptrend from $3.87 to $4.38.
It caused a bounce which has been more or less reversed.
The reversal signals a continuation of the downtrend.
The trend from $4.38 consists of three waves.
The third wave labelled c could be broken down into five smaller waves.
The bounce was driven by the fourth wave, the wave 4.
The fifth wave labelled 5 has started, unfolding towards $3.99, which is pointed by a falling trendline.
Resistance is at $4.18-1/2, a break above which could lead to a gain limited to $4.25-3/4.
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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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