SINGAPORE: CBOT March corn may retest a resistance at $5.87-1/4 per bushel, a break above which could lead to a gain into $5.91 to $5.96-3/4 range.
The contract has almost recovered from the drop on Monday.
The swift recovery signals a continuation of the uptrend, which could be extending towards the rising trendline resistance around $5.96-3/4.
Support is at $5.81-3/4, a break below which could cause a drop into $5.72-1/4 to $5.77 range. Once the contract falls to $5.77, the rise from the Nov. 30 low of $5.62-1/2 will be confirmed over.
On the daily chart, corn seems to be climbing towards the upper trendline of a rising wedge. A total of five waves make up the rise from $5.16-1/4. The wave v is unfolding.
The wedge appears to be a top pattern. It will be confirmed as a bullish continuation pattern only when the resistance at $5.95-1/2 is broken.
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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