CBOT corn may retest support at $5.47-3/4
- Once corn drops to $5.23, the wedge will be confirmed as a top pattern
SINGAPORE: CBOT corn may retest a support at $5.47-3/4 per bushel, with a good chance of breaking below this level and falling into $5.32-1/4 to $5.41-3/4 range.
The spike forming Tuesday around a resistance at $5.65-1/4 marks the completion of a bounce from $5.32-1/4. Even though this bounce has a close relation with the preceding uptrend form $5.07, it still can't be confirmed as a continuation of the uptrend.
Instead, it appears to be a reaction against the drop from the July 21 high of $5.73. Immediate resistance is at $5.57-1/4, a break above which could lead to a gain into $5.65-1/4 to $5.73 range.
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On the daily chart, the contract failed to break a resistance at $5.59-1/4. It is expected to test a support at $5.43, a break below which may open the way towards $5.23.
Once corn drops to $5.23, the wedge will be confirmed as a top pattern.
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.
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