SINGAPORE: CBOT corn may end its bounce below a resistance at $7.84-1/4 per bushel and then resume its downtrend towards a range of $7.58-1/2 to $7.66-3/4.
The contract is riding on a wave c, which has travelled far below its 100% projection level of $7.79-3/4. This wave has a better chance of extending towards $7.66-3/4 to $7.58-1/2 range. Five smaller waves make up the wave c.
The current bounce has been driven by a wave 4, which will be reversed by the wave 5.
A break above $7.84-1/4 may lead to a gain into $7.87-3/4 to $7.91-1/2 range. On the daily chart, a projection analysis reveals a resistance at $7.81-1/4, around which the bounce may end.
CBOT corn still targets $7.58-1/2 to $7.66-3/4 range
The bounce is expected to be weak, simply because the uptrend from $5.12-3/4 may have reversed.
Even though the wave (5) from $6.95-1/2 may extend, such a possibility will only be considered if corn ends its correction high above $6.95-1/2.
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