SINGAPORE: CBOT July corn may retrace to a support at $4.21-1/2 per bushel, as it failed to break a resistance at $4.35-1/4 again.
The resistance is identified as the 86.4pc projection level of an upward wave c from $3.87.
The second failure to overcome this barrier indicates the development of a flat in the range of $4.15-$4.35.
Under this scenario, corn may fall to $4.15 again.
A break above $4.35-1/4 could lead to a gain into the range of $4.43-$4.51.
On the first-month continuous chart, corn faces a strong resistance zone of $4.29 to $4.45-3/4, formed by the 23.6pc retracement on a long-term downtrend from $8.43-3/4 to $3.01, and the 100pc projection level of an upward wave (C) from $3.35-1/2.
Should corn be able to close above $4.29 at the end of this week, it is likely to break $4.45-3/4 and rise towards $5.08-1/4 next week.
A loss far below $4.29 would signal an exhaustion of the rally, the contract may then retrace towards $4.03-1/2.
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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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