SINGAPORE: CBOT September corn is poised to break a support at $4.17-3/4 per bushel, and fall towards the next support at $4.04-3/4.
These supports are identified as the 76.4% and the 100%projection levels of a presumed wave C from $4.60. This wave may extend to $4.04-3/4.
Corn failed to break this support in its first attempt, but may succeed in its current attempt. A bounce from the current level may be limited to $4.25-3/4.
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. The zone engulfs the $4.04-3/4 level.
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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. **