CBOT corn may rise towards $3.79-3/4 per bushel

• CBOT corn December corn may break a resistance at $3.69-1/4 per bushel.
• Corn may rise to $3.76. A falling trendline suggests a similar target.
• The trend has been driven by a wave (c) which could have ended at $3.52-1/4, as suggested by a high-low bottom forming around this level.

SINGAPORE: CBOT December corn may break a resistance at $3.69-1/4 per bushel and rise towards the next resistance at $3.79-3/4.

These resistances are identified as the 23.6% and the 38.2% retracement of the downtrend from $4.24-1/2 to $3.52-1/4. The trend has been driven by a wave (c) which could have ended at $3.52-1/4, as suggested by a high-low bottom forming around this level.

Based on this pattern, corn may rise to $3.76. A falling trendline suggests a similar target. Support is at $3.62-3/4, a break below which could cause a fall into the range of $3.52-1/4 to $3.57-1/4.

On the daily chart, a morning star signals a reversal of the downtrend. Further indication of a trend reversal is a rise above the May 13 low of $3.63-3/4.

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** Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.