SINGAPORE: A bullish target at $3.66 per bushel will remain intact for CBOT December corn, so long as it stays above a support at $3.57.
The support is identified as the 100% projection level of a downward wave (c) from $4.24-1/2. This wave may have ended around $3.52-1/4.
A falling trendline points at a target at $3.72-3/4 for the current bounce. A break below $3.57 could complicate the picture. Only a further drop below this level could confirm the extension of the wave (c) towards $3.31.
On the daily chart, a morning star has formed, signalling a reversal of the downtrend. Corn is facing a resistance at $3.63-3/4, the May 13 low, a break above which may confirm the reversal of the downtrend.
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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. **