SINGAPORE: CBOT corn may retest a resistance at $5.29 per bushel, a break above which could lead to a gain to $5.32-1/4.
The bounce from the Oct. 13 low of $5.06-3/4 observes closely a set of retracements on the rise from $4.97-1/2 and a set of projection levels on the uptrend from $5.06-3/4.
The contract could be riding on a wave C, which has briefly pierced above its 38.2% projection level of $5.26. Chances are it may extend into $5.32-1/4 to $5.38-1/4 range.
The 38.2% retracement of $5.29 temporarily stopped this wave and triggered a correction, which is expected to end around $5.23. A further fall could signal a reversal of the uptrend from $5.06-3/4.
On the daily chart, corn rose above a resistance at $5.19-1/4. It could be heading towards the next resistance at $5.33-1/2.
This resistance is strengthened by a similar one established by a falling trendline. A correction towards $5.19-1/4 may occur around $5.33-1/2.
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