SINGAPORE: CBOT corn may retest a resistance at $5.20-1/2 per bushel, a break above which could lead to a gain to $5.27-3/4.
A projection analysis reveals that the wave C from $5.58 narrowly missed its target of $4.93-1/4. The strong bounce from the Sept. 10 low of $4.97-1/2 confirmed the completions of this wave and the downtrend from the Aug. 12 high of $5.94-1/4.
This bounce could roughly match the one from the Aug. 23 low of $5.29-1/2. At least, it may consist of three waves. The current wave b could end around $5.11-3/4, to be reversed by the wave c.
On the daily chart, the rise on Sept. 10 looks like a pullback towards a wedge. This pullback may be overdone, as indicated by signals on the hourly chart.
A bearish target of $4.44-1/4 has been temporarily aborted. It will be resumed when corn breaks $5.01-1/2.
Charts are not available in reports received through "Alert". To get charts, key in "TECH/C" to retrieve the original reports.
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.
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