SINGAPORE: CBOT May corn may retest a support of $6.48-1/4 per bushel, a break below which could be followed by a drop into $6.43-1/2 to $6.46-1/2 range.
The deep drop over the past few trading sessions has been driven by a wave 3, which shows no sign of completion. It is hard to predict the exacting ending point of this exceptional wave.
However, its strong momentum does suggest a further extension towards $6.35-1/4.
A rise above $6.52-1/4 could be extended to $6.54-1/2. On the daily chart, both the downtrend from $7.66-1/2 and the trend from $7.12 have resumed.
They are respectively driven by two waves of different degree.
Corn edges higher, set for second weekly drop on US planting outlook
Two projection analyses on these waves suggest a target of $6.38, which will be confirmed when corn breaks the immediate support of $6.47.
A bounce from the current level may be limited to $6.56.
Comments
Comments are closed.