SINGAPORE: CBOT July corn looks neutral in a range of $4.44-1/2 to $4.55-3/4 per bushel, and an escape could suggest a direction.
The range is formed by the 38.2% and the 50% projection levels of an upward wave C from $4.08-1/4. This wave may have ended around $4.66-3/4, or its first leg has ended.
A break below $4.44-1/2 could cause a loss to $4.30-1/2, while a break above $4.55-3/4 could lead to a gain to $4.66-3/4. Only a further gain could confirm the extension of the wave C towards $5.03-1/4.
On the first month continuous chart, corn failed to break a resistance at $4.61-3/4, the 114.6% projection level of an upward wave (C).
Corn's reaction to this barrier is stronger than expected. It is observed that sometimes a wave (C) ends around its 114.6% projection level. In most of the cases, the wave (C) could travel beyond 114.6% level.
A break below $4.45-3/4 could open the way towards $4.30-3/4.
* 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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