CBOT corn may bounce further to $6.86-3/4

SINGAPORE: CBOT corn may bounce further to $6.86-3/4 per bushel, following its stabilisation around a support at $6.46-1/2.

The contract observes a set of retracements of the uptrend from $6.02-3/4 and a set of projection levels on the drop from $7.17-1/2.

Either the drop or its first part has ended around $6.46-1/2.

This drop could be further reversed, as the contract could still be under a consolidation phase. A deep fall is generally followed by a decent bounce.

The target at $6.86-3/4 will be confirmed when corn breaks $6.73-1/2. Immediate support is at $6.67-3/4, a break below which could cause a fall to $6.60.

On the daily chart, the consolidation is taking the shape of a wedge, the lower trendline suggests a target around $6.26-3/4.

However, corn found a support at $6.52-1/4, it may bounce towards the range of $6.84 to $7.03-1/2 before falling again.

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