SINGAPORE: CBOT September corn may retest a support at $4.17-3/4 per bushel, a break below which could open the way towards $4.04-3/4.
The support is identified as the 76.4% projection level of a presumed wave C from $4.60. This wave may extend to $4.04-3/4. The bounce triggered by this support seems to be ending around $4.25-3/4, around which, the wave C may resume.
A break above $4.25-3/4 may lead to a gain into the range of $4.32-1/4 to $4.38-3/4. The break will be confirmed when corn rises to $4.28.
A retracement analysis on the uptrend from $3.52-1/2 to $4.68-1/2 reveals a target zone of $3.96-3/4 to $4.10-1/2, formed by the 61.8% and the 50% levels. Both this retracement analysis and the projection analysis suggest a further fall.
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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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