SINGAPORE: CBOT corn may revisit its Sept. 30 high of 6.96-1/4 per bushel, as most of the drop from this level has been reversed.
The reversal, coupled with the surge from the Oct. 7 low of $6.71-1/2, suggests a continuation of the uptrend.
The confirmation of the uptrend will be when corn breaks $6.96-1/4.
The correction from $6.99-1/2 was so shallow that it barely extended below the 23.6% retracement of the uptrend from $5.61-3/4.
This is very uncommon, as the correction is supposed to at least reach $6.46-3/4, assuming the uptrend has peaked at $6.99-1/2.
CBOT corn may retest support at $6.77-1/4
Either the uptrend is too strong or the correction from $6.99-1/2 has not completed.
Support is at $6.81-1/2, a break below may be followed by a drop into $6.72-3/4 to $6.77-1/4 range.
On the daily chart, corn remains sideways around a key resistance at $6.88.
Its confusing behaviour complicates the picture.
There is early signal of a break above this resistance.
However, a confirmed break will be when corn climbs above $7.00.
Trending signals will become bearish only when corn drops below the Oct. 7 low of $6.71-1/2.
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