SINGAPORE: CBOT March corn may hover around $6.09-3/4 per bushel for one trading session before heading lower towards $5.97.
The big gap on the hourly chart indicates an evaporation of the bullish sentiment, confirming an assumption that the rise from the December 2011 low of $5.76-1/4 is a rebound and will be totally reversed.
A strong rebound from the current level is unlikely, as the bulls should have pushed the price up during the previous trading session if they were bold enough.
The 61.8 percent Fibonacci retracement on the rise from $5.76-1/4 to $6.64-1/4 provides a temporary support, which could be broken below soon.
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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