CBOT corn may test support at $5.24
- The contract is pulling back towards a short rising trendline
SINGAPORE: CBOT corn December may test a support at $5.24 per bushel, a break below which could open the way towards $4.97-1/4.
The deep drop on Tuesday confirms a continuation of the downtrend from the June 10 high of $6.28-1/4. The trend is riding on a wave C, which may travel to $4.97-1/4.
The contract is pulling back towards a short rising trendline. The pullback may end around a resistance at $5.40-3/4.
On the daily chart, either the consolidation within a big wedge has extended, or the downtrend from the May 7 high of $6.38 has resumed.
The current fall is presumed to have been driven by a wave e. As long as corn remains above $5.23, it is still likely to resume its uptrend.
A break below this level could open the way towards $4.90-1/2.
The pattern looks bullish. It will be confirmed when corn breaks the uptrend line resistance around $6.20.
The contract is believed to be riding on a wave V, which could prove to be a wave d, to be followed by a downward wave e, if corn fails to go above the upper trendline.
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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