SINGAPORE: CBOT May corn may retest a resistance at $3.76 per bushel, as it could have completed a correction triggered by this barrier.
The resistance is identified as the 50 percent retracement of the downtrend from $3.91 to $3.61. The correction failed to extend below a support at $3.68, from which the strong recovery of the price signals a completion of the correction.
Strategically, a break above $3.72-1/4 could confirm the target at $3.76. A break below $3.68 could cause a loss into the range of $3.63 to $3.65-1/4.
On the daily chart, corn has completed a pullback towards $3.68-3/4, the 50 percent projection level of a downward wave C. The contract is poised to rise towards $3.77.
* 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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