CBOT corn may retest resistance at $5.53-1/4

SINGAPORE: CBOT corn December futures may retest a resistance at $5.53-1/4 per bushel, a break above which could lead to a gain into $5.57-1/4 to $5.67-1/2 range.

The resistance is strengthened by another one established by a falling trendline.

The current correction may be shallow, limited to $5.47-3/4.

A deeper drop to $5.41-3/4, however, could signal the continuation of the downtrend from the July 2 high of $5.73.

CBOT corn may test support at $5.35

Corn is riding on a wave (c), which is expected to travel into $5.57-1/4 to $5.73 range. In addition to a set of projection levels, the move is controlled by a set of retracements on the fall from $6.28-1/4 to $5.07 as well.

On the daily chart, the contract broke a resistance at $5.43. It may test the next resistance at $5.59-1/4. A break below $5.43 may open the way towards $5.23.

A wedge may turn out to be a top pattern, as its lower trendline has been repeatedly tested.

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.