SINGAPORE: CBOT March corn is expected to test a resistance at $6.81-1/2 per bushel, a break above which could lead to a gain to $6.86-1/4. The contract is riding on a wave c from $6.61-1/4, which may travel into a wide range of $6.92 to $7.01-3/4.
This wave is a part of a bigger wave C from $6.48-1/4, which may extend to $6.98-1/4. However, after breaking a short trendline, corn is yet to pull back towards this line. The extensions of the wave c and the bigger wave C may not occur before the pullback.
A break below $6.76-1/2 may be followed by a deep drop to $6.70-3/4. On the daily chart, corn climbed above a falling trendline again.
This latest move suggests an extension of the uptrend from the Dec. 6, 2022 low of $6.35-3/4. A close below the trendline support of $6.76 on Wednesday will be bearish. It will significantly decrease the chance of the uptrend extension.