SINGAPORE: CBOT May corn still targets a range of $6.33-1/2 to $6.38-1/2 per bushel, as suggested by its wave pattern. A five-wave cycle from the Feb. 14 high of $6.84-3/4 has completed. The completion was confirmed by its wave structure and the small triple-bottom forming around $6.09.
After narrowly missing its first target of $6.29-3/4, the contract started a correction which has been quickly reversed. The reversal signals the extension of the bounce towards the second target of $6.42-3/4, where the wave 4 ended.
Support is at $6.22-1/4, a break below which will not only trigger a drop towards the range of $6.17-1/2 to $6.20-1/2 but also confirm a completion of the bounce.
Corn near 1-week high on Argentina supply woes, soybeans firm
On the daily chart, the contract experienced a small hiccup around a resistance of $6.27-1/4. Its target range of $6.38-1/4 to $6.47 still looks promising.
The basic assumption is that the drop from $6.84-3/4 looks so deep, it must be accompanied by a decent bounce, especially after the completion of five-wave cycle.
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