SINGAPORE: CBOT corn may break a support at $6.51-1/4 per bushel and fall to $6.39, as suggested by a retracement analysis and a rising channel.
The contract dropped below the Wednesday low of $6.50-1/4.
The lower low and the lower high form a typical reversal pattern.
Even if the whole uptrend from $5.87-1/2 remains intact, it could have adopted a zigzag mode, much confined within a rising channel.
The channel line points at a target zone of $6.29-1/4 to $6.39.
Resistance is at $6.58-3/4, a break above which could lead to a gain into $6.65-$6.71 range. On the daily chart, the contract failed to break a resistance at $6.64.
Its failure could have triggered a correction towards $6.39-3/4.
US wheat, corn, soyabeans fall
The uptrend from $5.61-3/4 consists of more white candlesticks than the black ones.
Such a formation symbolizes a prevailing bullish sentiment, which is likely to push price above $6.64 in due course.
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