SINGAPORE: CBOT March corn may test resistance at $6.00-3/4 per bushel, a break above which could lead to a gain to $6.05-1/2.
The contract is riding on a wave c, which may end around $6.00-3/4, its 61.8% projection level, or extend to $6.13. The zigzagging rise suggests a completion of the wave c around $6.00-3/4.
A rising trendline establishes a resistance around $6.00-3/4, making a bearish reversal highly likely. Immediate support is at $5.97-1/4, a break below which could cause a fall into $5.88-3/4 to $5.93-1/2 range.
Signals on the daily chart are a bit conflicting with that on the hourly chart, as the contract climbed close to the upper trendline of a rising wedge, which seems to become a bullish continuation pattern.
A break above $6.02-1/2 may confirm this bullish wedge and a target of $6.30, while a break below $5.95-1/2 may be followed by a drop towards $5.89-3/4.
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