CBOT corn consolidate between $7.26-3/4 to $7.75/bsh
SINGAPORE: CBOT July corn may consolidate further within a range of $7.26-3/4 to $7.75 per bushel, as its current slow rise seems unable to establish a short-term uptrend.
Only after corn surges above $7.75 could prices target $7.98-1/2, the 61.8 percent Fibonacci projection level of a wave (3), because the current zigzag rise from $7.26-3/4 signals a weak momentum.
The fall on Friday has increased the chance for a retracement to $7.26-3/4, but only a deeper drop to $7.20 could a bearish double-top be confirmed, with a target to be established at $6.79.
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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