SINGAPORE: CBOT December corn may break a support at $3.64-1/2 per bushel and fall towards the next support at $3.60-1/2.
These supports are identified as the 38.2 percent and the 50 percent retracements on the uptrend from $3.42-1/2 to $3.78-1/2.
The trend is divided into three waves.
The second wave labelled b ended around $3.56-1/4, which is highly likely to be approached, as corn fell into a lower channel, which was duplicated from an upper channel. The lower channel suggests a target around $3.56-1/4 as well.
It is not very clear if corn could break $3.64-1/2 at its first attempt. A drop to $3.63-1/2 may confirm the break. A rise to $3.67-3/4 could be extended to $3.70.
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Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.
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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