CBOT corn may test resistance at $5.84-1/2
- A break below $5.75-1/2 will not only cause a fall into the range of $5.43 to $5.59-1/4
SINGAPORE: CBOT corn December may test a resistance at $5.84-1/2 per bushel, a break above could lead to a gain to $6.01-1/4.
The rise from $5.17-1/2 consists of five waves. So far, only four waves have unfolded.
The fifth wave labelled (5) is yet to travel towards $6.12-1/2.
The wave (4) appears to be ending above $5.71-1/4, which will be reversed by the wave (5). Support is at $5.71-1/4, a break below could cause a fall to $5.57-3/4.
On the daily chart, the contract seems be riding on a wave V, which is expected to travel above the peak of the wave III at $6.38, the May 7 high.
The consolidation from this high has been shaped into a bullish wedge, which will be confirmed when corn breaks the uptrend line resistance around $6.20.
A break below $5.75-1/2 will not only cause a fall into the range of $5.43 to $5.59-1/4, but also suggest an extension of the consolidation.
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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