SINGAPORE: CBOT corn may stabilise in a support zone of $5.65 to $5.68-1/4 per bushel and resume its rise, as a wave (3) from $5.33 looks incomplete.
Deep as it is, the correction from the Nov. 2 high of $5.86 followed the completion of a small five-wave cycle. It is observed that the preceding rally also adopted impulsive wave mode.
The starting point of the wave (3) is fixed at $5.33.
Its structure suggests a partial completion. The pivotal level is at $5.65, a break below which may open the way towards $5.50-3/4 to $5.57-3/4.
On the daily chart, there is a false break above a resistance of $5.76-1/2 and a falling trendline.
This failure raised an alarm at a possible extension of the wedge.
As long as corn could stabilise around a support at $5.65-1/2, it may keep testing the trendline of the wedge.
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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