SINGAPORE: CBOT May corn looks neutral in a range of $3.77-1/2 to $3.81 per bushel, and an escape could suggest a direction.
The downtrend from $3.95 is of elusive nature. It is so zigzagging that it created a lot of confusion. Until now, it remains unclear which wave is driving the trend.
The only clear part is the trend is down within a falling channel, which suggests that it may extend further to $3.75-1/4, the 86.4 percent projection level of a presumed wave C. This target will be confirmed when corn breaks $3.77-1/2.
On the daily chart, the downtrend has been observing two sets of levels, a set of retracements on the uptrend from $3.63-1/4 to $3.97-3/4 and a set of projection levels of a downward wave C from $3.97-3/4.
The critical support will be at $3.76-1/2, a break below which could trigger a round of deep fall. The wave pattern does suggest such a possibility.
* 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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