CBOT corn to extend rebound to $7.75 a bushel
SINGAPORE: CBOT July corn may edge up to $7.75 per bushel, as the current wave "b" rebound may extend.
After touching resistance at $7.56-1/2, the 61.8 percent Fibonacci retracement on the fall from $7.75 to $7.26-3/4, the contract retraced moderately to a low at $7.40-3/4 on May 27.
However, the subsequent recovery was immediate, signaling a further gain to $7.75 is possible, assuming the current consolidation is still under a flat "a-b-c" wave mode.
Support is at $7.39, a fall below which will extend to $7.26-3/4.
** 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.
Copyright Reuters, 2011
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