SINGAPORE: CBOT corn may test a resistance at $7.89 per bushel, as it has stabilized around a support at $7.75-3/4.
The support is identified as the 61.8% projection level of a downward wave C from $8.10-1/4.
This wave could be broken down into five smaller waves. Such a structure, along with the strong reaction of the market around $7.75-3/4, indicates the completion of the wave C.
A break above $7.89 may lead to a gain to $7.97 while a break below $7.75-3/4 could open the way towards $7.67-3/4.
On the daily chart, a five-wave cycle from $5.12-3/4 seems to have ended at the April 29 high of $8.24-1/2.
CBOT corn may test support at $7.75-3/4
The current correction may extend towards the range of the wave (4) from $6.93-1/4 to $7.47.
However, the support at $7.70-3/4 holds firm, around which, a temporary bottom is developing.
The target zone of $6.93-1/4 to $7.47 will only be available when corn breaks $7.70-3/4.
Before the following trend is confirmed, corn may rise towards $7.95-3/4 first.
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