SINGAPORE: CBOT May corn may bounce towards a resistance at $3.76 per bushel, following its failure to break a support at $3.72-1/4.
The support is identified as the 38.2 percent retracement of the downtrend from $3.91 to $3.61. It may trigger a pullback toward a rising trendline.
The fall from the March 25 high of $3.80-3/4 looks like the right shoulder of an inverted head-and-shoulders developing from the March 1 low of $3.66. However, this pattern will have a slim chance of confirmation if corn breaks $3.72-1/4. The break could cause a loss to $3.68.
On the daily chart, corn is trying to stabilise around a support at $3.72-1/2, the 14.6 percent retracement of the downtrend from $4.41-1/4 to $3.61. A fall below the March 27 low of $3.72 could confirm a break below this support.
* 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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