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