CBOT corn may fall more
SINGAPORE: CBOT July corn may dip further, as a double-top pattern is likely to be confirmed soon.
The sharp fall during the previous trading session has accumulated a strong bearish momentum which has made support at $7.26-3/4 look vulnerable.
The support serves as the neckline of a double-top, a break below it will trigger a further fall to $6.78.
A brief piercing below $7.26-3/4 won't be considered as a valid break, instead it could be a bear trap.
** 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.
Copyright Reuters, 2011
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