SINGAPORE: CBOT July corn may retrace moderately to a support at $4.44-1/2 before retesting a resistance at $4.55-3/4 per bushel, as suggested by a flag pattern and a projection analysis.
The flag developed from the June 17 high of $4.64-1/4. Corn may pull back towards this pattern while loosing its momentum around $4.55-3/4, the 50% projection level of an upward wave C from $4.08-1/4.
A break above $4.55-3/4 could lead to a gain to $4.66-3/4, while a break below $4.44-1/2 could cause a loss to $4.30-1/2. On the first-month continuous chart, corn climbed above a resistance at $4.45-3/4, the 100% projection level of an upward wave (C). The contract is supposed to retest $4.61-3/4.
However, the bearish divergence on the daily RSI does not support a strong rally. Most likely, corn will fail to break $4.61-3/4 again.
* 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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