SINGAPORE: CBOT March corn may test a support at $6.13 per bushel, a break below which could cause a fall to $6.06-1/2.
The contract has broken a support at $6.19-1/2. The next support is at $6.13. Even though corn may fall further, there is no indication on the depth of the current fall.
A wise choice could be to simply observe the various supports.
A break above $6.19-1/2 could lead to a gain to $6.27-1/2.
CBOT corn to rise towards $6.27-1/2 to $6.40-3/4 range
On the daily chart, the long-shadowed doji on Tuesday is considered as a bearish reversal signal.
A rising channel roughly indicates a target of $5.95-1/2.
However, this target looks doubtful, as corn is riding on a wave c, which may travel to $6.49-1/4. Most likely, corn would find a support around $6.05-3/4 and resume its uptrend thereafter.
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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