CBOT corn may fall towards $5.35-1/2
- Both of these bounces were triggered by the lower trendline of the wedge
SINGAPORE: CBOT corn December futures may break a support at $5.41-3/4 per bushel and fall towards $5.35-1/2.
The contract failed to break a falling trendline and a resistance at $5.57-1/4. The failure casts a big doubt on whether the rise from $5.32-1/4 is driven by a wave (c).
The intact trendline suggests a steady downtrend from the July 21 high of $5.73.
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However, the strong mathematical relation between the wave (c) and wave (a) indicates an extension of the uptrend from $5.07. These signals are conflicting.
A break above $5.51 could confirm the progress of the wave (c) towards $5.73. On the daily chart, the bounce from the July 26 low of $5.32-1/4 is much weaker than the one from the July 9 low of $5.07.
Both of these bounces were triggered by the lower trendline of the wedge.
The support established by the trendline seems to be becoming weaker.
It is vulnerable under the repeated attacks by bears.
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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