SINGAPORE: CBOT corn may break a resistance at $5.32-1/4 per bushel, and rise into $5.36-1/4 to $5.38-1/4 range.
The bounce from the Oct. 13 low of $5.06-3/4 is controlled by 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 is presumed to be riding on a wave C, which is capable of travelling to $5.38-1/4, its 61.8% projection level.
After breaking above the 38.2% retracement of $5.29, the contract has a better chance of rising to $5.36-1/4.
Support is at $5.29, a break below which could cause a fall into $5.23 to $5.26 range. On the daily chart, signals are a bit mixed as corn faces a resistance at $5.33-1/2, which is strengthened by a similar one established by a falling trendline.
These resistances are likely to work together to trigger a correction towards $5.19-1/4. However, signals on the hourly chart won't compromise this bearish indication.
The bet is corn may break $5.33-1/2 and rise towards $5.47-3/4.
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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