SINGAPORE: CBOT May corn looks neutral in a range of $3.58 to $3.61-1/4 per bushel, and an escape could suggest a direction.
The range is formed by the 7 percent and the 14.6 percent retracements on the downtrend from $3.97-3/4 to $3.55-1/4. A break below $3.58 could cause a loss to $3.55-1/4. The break will be confirmed when corn falls to its April 16 low of $3.57-1/4.
A break above $3.61-1/4 could lead to a gain to $3.65-1/4. Signals on the daily chart turned neutral as well. A small double-bottom is forming around the support at $3.56-1/4, the 100 percent projection level of a downward wave (c) from $3.97-3/4.
However, the deep fall on Tuesday makes this pattern look doubtful. A break below $3.56-1/4 or above $3.66 could tell the next direction.
* Charts are not available in reports received in email box through "Alert". To get charts, use the news code of 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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