CBOT corn may drop to $3.28-1/2

SINGAPORE: CBOT December corn may drop to $3.28-1/2 per bushel as it has broken a support at $3.40-1/2.

The support is provided by the 38.2 percent Fibonacci projection level of a downward wave C, the third wave of a three-wave cycle from the June 17 high of $4.49. This wave is capable of traveling to $3.16-1/4, its 61.8 percent Fibonacci projection level. A more realistic target could be $3.28-1/2, the 50 percent level.

Resistance is at $3.46, the July 6 low, a break above which could lead to a gain to the 23.6 percent level at $3.55-1/2.