SINGAPORE: CBOT March corn may retrace to $5.98-1/2 per bushel, as it failed twice to break a resistance at $6.13.
The failures triggered a pullback towards a wedge. Even though this pattern suggests a target around $6.19, corn may not fulfil this target until it completes the current correction.
The wedge makes up a more bullish pennant, together with the preceding rise from $5.62-1/2. The pattern indicates a target of $6.41, which has to be temporarily aborted as well.
CBOT corn may retest resistance at $6.11-1/4
A break below $5.98-1/2 is less likely, while a break above $6.13 could lead to a gain to $6.19-1/2. On the daily chart, a false break occurred around a resistance at $6.08-1/4.
Corn may consolidate around this level for one or two days before resuming its rise.
A double-bottom indicates a further gain to $6.40, which will be confirmed when corn breaks $6.17-3/4.
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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