SINGAPORE: CBOT corn may test a support at $6.20-3/4 per bushel, a break below could open the way towards $6.13-1/2 to $6.17-1/4 range.
The drop triggered by the resistance at $6.40 may consist of three waves.
So far, only two waves have unfolded.
The wave c may travel below $6.17-1/4, which is near the bottom of the wave a.
A break above $6.28-1/2 may lead to a gain into $6.32-3/4 to $6.40 range.
On the daily chart, a hanging-man pattern forming on Aug. 12 suggests a completion of the wave c or its first part.
A rising trendline indicates a further drop to $6.09-3/4.
However, the downside could be very limited, due to the completion of a five-wave cycle from $7.78-3/4 This cycle is expected to be further reversed.
A break above $6.36-3/4 could open the way towards $6.53-1/2 to $6.63-3/4 range.