SINGAPORE: CBOT corn may extend gains into a range of $7.75-3/4 to $7.82-1/2 per bushel, as a bounce from the June 1 low of $7.20-1/2 could be against the downtrend from the April 29 high of $8.24-1/2.
The trend adopted a corrective wave mode.
The third wave, the C is exactly 1.618 times longer than the wave A.
The 7.20 level looks like the ultimate low that the wave C could travel to.
Another projection analysis on the uptrend from $7.25-3/4 reveals a break above the 161.8% level of $7.56.
CBOT corn may test resistance at $7.41-1/2
Chances are the trend may extend to $7.74-3/4. Support is at $7.62-1/4, a break below which could trigger a fall to $7.56.
On the daily chart, the contract is presumed to be riding on a wave B, the second wave of a three-wave cycle from the April 29 high of $8.24-1/2.
A strong wave B could travel close to $8.11, while a weak one may end far below this level.
The big white candlestick on Tuesday suggests a further gain toward $7.81-1/4.
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