SINGAPORE: CBOT March corn is expected to retest a support at $3.68-3/4 per bushel, as suggested by its wave pattern and a projection analysis.
The contract is riding on a wave C from $3.81-3/4. This wave is capable of travelling to $3.65, its 100 percent projection level. This wave was disrupted by the sharp bounce triggered by the support at $3.68-3/4.
This is not a big surprise, as the former support at $3.71-1/4 caused a similarly strong bounce. These bounces indicate a very volatile market sentiment, as no consensus has been reached.
A break above $3.73-1/4 could lead to a further gain to $3.79-1/4. But such a break could be unlikely.
* Charts are not available in reports received in email box through "Alert". To get charts, use the news code of TECH/C to retrieve the original reports.
** 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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