CBOT corn may retest resistance at $5.59-3/4
- A break below $5.45-3/4 will make the wedge invalid. A bearish target zone of $5.30 to $5.37-3/4 will be established accordingly.
SINGAPORE: CBOT March corn may retest a resistance at $5.59-3/4 per bushel, a break above which could lead to a gain to $5.64.
The contract is riding on a wave c from $5.40-3/4, which is capable of travelling to $5.71-1/2, its 100% projection level. The resistance at $5.59-3/4 triggered a correction which seems to have ended around $5.52-1/4.
Another projection analysis on the uptrend from $5.24-3/4 reveals a key resistance at $5.55-3/4, the 38.2% level, which has been briefly pierced.
This is a major breakthrough to bulls, after many failed attempts to overcome this barrier. A rise above $5.55-3/4 could confirm a break and a target of $5.65-1/2.
A break below $5.52-1/4 could cause a fall to $5.48. On the daily chart, the uptrend is developing within a rising wedge, which suggests a target around $5.86-1/4.
A break below $5.45-3/4 will make the wedge invalid. A bearish target zone of $5.30 to $5.37-3/4 will be established accordingly.
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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