- The bounce triggered by the support at $5.47-1/4 could be short-lived, limited to $5.54
SINGAPORE: CBOT corn may retest a support at $5.47-1/4 per bushel, a break below which could cause a fall into $5.36-1/2 to $5.43-1/4 range.
The contract is riding on a wave c from $5.82, which is expected to travel into $5.36-1/2 to $5.43-1/4 range. The bounce triggered by the support at $5.47-1/4 could be short-lived, limited to $5.54.
A retracement analysis on the rise from $5.07 to $5.94-1/4 reveals a support at $5.50-1/2, which has been briefly pierced.
It does not seem to hold.
A break above $5.54 could lead to a gain to $5.60-1/2. On the daily chart, corn is expected to fall to $5.43, the 61.8% projection level of a downtrend from $6.28-1/4.
The uptrend from $3.57 is likely to resume, if corn manages to remain above $5.43. A break could open the way towards the $5.09 to $5.23 range.
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