CBOT corn may retrace to $3.93-1/2 per bushel before rising

• The resistance is identified as the 138.2pc projection level of the upward wave c from $3.65-3/4.
• A projection analysis reveals a break above the 38.2pc level at $3.93-3/4.

SINGAPORE: CBOT December corn may retrace moderately to $3.93-1/2 per bushel, before retesting a resistance at $3.96-3/4, as suggested by a projection analysis.

The resistance is identified as the 138.2pc projection level of the upward wave c from $3.65-3/4.

This wave failed to travel above the resistance.

It could have unfolded too fast. A shallow correction will help it accumulate momentum to retest the resistance.

Eventually, this wave c would extend to $4.02. On the daily chart, the contract is riding on a wave C from $3.52-1/4, which is the third wave of a presumed irregular flat.

A projection analysis reveals a break above the 38.2pc level at $3.93-3/4.

The break opened the way towards $4.06-3/4.