SINGAPORE: CBOT corn may retest a resistance at $8.09-1/4 per bushel, a break above which could lead to a gain into $8.13-3/4 to $8.21-1/4 range.
The contract is presumed to be riding on a wave 3, which is capable of travelling into $8.21-1/4 to $8.28-3/4 range. The current correction triggered by the resistance at $8.09-1/4 may end around $8.01-3/4.
A retracement analysis on the downtrend from $8.24-1/4 reveals a brief piercing above the key 61.8% level of $8.03-1/4.
Such a move strong suggests a reversal of the trend.
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A drop below $8.00 may be extended to $7.97.
On the daily chart, corn seems to be riding on a wave (5)-3, which is capable of travelling above the April 29 high of $8.24-1/2.
The correction triggered by the resistance at $8.11 is regarded as an accumulation of bullish momentum, rather than a reversal of the uptrend.
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