SINGAPORE: CBOT May corn looks neutral in a range of $7.28-1/4 to $7.42-1/2 per bushel, and an escape could suggest a direction.
The drop on Wednesday seems to have confirmed a bearish triangle. However, such a pattern is generally very unreliable. Only when corn breaks $7.28-1/4 could confirm the triangle as a top pattern.
A bearish target of $7.04-1/4 will be established accordingly.
A break above $7.42-1/2 could lead to a gain to $7.54-1/4.
On the daily chart, a triangle is contracting to a point. It is supposed to be a bullish continuation pattern.
However, this triangle may also turn out to be a top pattern, as the big black candlestick on Wednesday signals a drop towards $6.97-1/2 to $7.15-1/4 range.
CBOT corn biased to test resistance at $7.66
A fall below the Wednesday low of $7.26-3/4 could confirm the bearish triangle.
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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