SINGAPORE: Signals are mixed for CBOT March corn, which failed to reach a target at $3.89-1/4 per bushel and fell below a support at $3.85.
The target is at the 61.8 percent projection level of a wave C from $3.67-1/4. The failure of the contract to fulfil the target could be due to a miscalculation of the projection levels.
However, a retracement analysis on the daily chart reveals that the failure was indeed due to a strong resistance at $3.86, the 38.2 percent retracement on the downtrend from $4.37 to $3.54-3/4.
Corn seems to be have been stuck in a tricky situation. A break above $3.86 could open the way towards $3.95-3/4, while a failure could cause a loss to $3.74. There is little clue to which direction the contract is heading to. Further development of the chart is needed to evaluate the next move.
* 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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