SINGAPORE: CBOT corn may test a resistance at $7.73-1/4 per bushel, a break above could lead to a gain into $7.78-1/2 to $7.87 range.
The contract refused to fall below a key support at $7.54-3/4, the 100% projection level of a wave C from $8.10-1/4. Its behaviour suggests a completion of this wave.
The bounce triggered by the support has been shaped into a wedge, the upper trendline of which suggests a target of $7.73-1/4.
A break below $7.59-1/2 could confirm the wedge as a bearish continuation pattern, a target zone of $7.46-1/2 to $7.54-3/4 will be established accordingly.
Sufficient stocks of maize available for consumption: CAP
On the daily chart, a hammer formed on Wednesday and an inverted hammer on Thursday. Together, they make powerful reversal signal.
Either the uptrend from $5.12-3/4 could resume, or a bounce would occur, which could be as decent as the one from the May 9 low of $7.69.
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