SINGAPORE: CBOT March corn is biased to break a support at $6.63-3/4 per bushel, and fall into a range of $6.58-1/4 to $6.61-1/2. The consolidation of the past seven trading days has been well confined within the daily range of the Nov. 15, which is from $6.53-1/2 to $6.77.
It seems the consolidation is being shaped into a wedge, which may turn out to be a bearish continuation pattern, as it appeared after a downtrend.
Even though the rise from $6.58-1/4 is mathematically related to the range, the failure of the presumed wave c to break a resistance at $6.72-3/4 strongly suggests a completion of this wave.
The following sideways move could be sandwiched between two trendlines of the wedge. The lower trendline points at a target of $6.59-3/4.
Resistance is at $6.67, a break above which may lead to a gain into $6.70 to $6.72-3/4 range.
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Signals on the daily chart are a bit neutral, as corn is stuck in the range of $6.57 to $6.78. The basic assumption is the contract is riding on a wave C from $7.11-3/4, which could travel to $5.68-3/4.
A realistic target will be $6.40-1/4, which will be confirmed when corn breaks $6.57.
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