SINGAPORE: CBOT September corn may retest a resistance at $3.70-1/2 per bushel, a break above which could lead to a gain into a range of $3.77 to $3.83-1/2.
The resistance is identified as the 161.8% projection level of a downward wave C from $4.60. The bounce from the Aug. 15 low of $3.58-1/4 consists of three waves. The current wave c is capable of travelling to $3.77.
The bullish divergence on the hourly RSI suggests a further gain as well. On the daily continuous chart, a morning star forming between Aug. 14 and Aug. 16 is a convincing signal that the downtrend from $4.64-1/4 may have reversed.
The current bounce may be as strong as the one from the Aug. 1 low of $3.87-1/4 or the one from the July 2 low of $4.08-1/4.
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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. **