SINGAPORE: CBOT December corn would retrace more to $7.44 per bushel, as it has completed a rebound that started at $7.05.
The first leg of the fall from $7.68-1/2 has reached a support at $7.53-1/2, the 23.6 percent Fibonacci retracement on the rise from $7.05 to $7.681-1/2. This support will temporarily stop the fall.
However, it is uncommon for a retracement to just end around the 23.6 percent level of the preceding trend. Statistically and empirically, 0.382 is a more frequently seen ratio.
Most likely, corn will reach $7.44, the 38.2 percent retracement, in its second downward leg of the fall.
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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