SINGAPORE: CBOT March corn may fall more, into a range of $6.37 to $6.41-3/4 per bushel, a projection analysis suggests.
The contract has fallen far below $6.53-3/4, the 161.8% projection level of a downtrend from $7.04-3/4. Chances are the fall may extend to $6.29-1/2.
A falling trendline points at a realistic target of $6.37.
The current drop seems to be driven by a strong momentum.
A decent bounce is unlikely to occur until corn fulfils its target zone of $6.29-1/2 to $6.37.
CBOT corn poised to rise into $6.76 to $6.81-3/4 range
Immediate resistance is at $6.49, a break above which could lead to a gain to $6.53-3/4.
On the daily chart, two calculations suggest the same target.
A pennant has been confirmed, indicating a target of $6.02-1/4.
A wave B reversed about 76.4% of the wave A. When this ratio is applied to the current wave C, the target of $6.02-1/4 is also worked out.
Given that the former support of $6.57 triggered a decent bounce, the drop may pause around $6.40-1/4.