SINGAPORE: CBOT September corn is biased to rise to $3.70-1/2, as it failed to break a support at $3.57 per bushel and climbed above a resistance at $3.62-1/2.
The support is identified as the 186.4% projection level of a downward wave C from $4.60. The downtrend looks exhausted. A decent bounce could be on the way.
Corn failed twice to break $3.57. The failures suggest the formation of a double-bottom around this level. A break below $3.57 could cause a fall limited to $3.49-1/2.
On the daily continuous chart, corn managed to stabilize around a support at $3.61-1/2, the 76.4% level of a downward wave c from $4.17. The stabilization could be followed by a bounce towards $3.72.
* 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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