SINGAPORE: CBOT July corn may test a resistance at $6.18 per bushel, a break above which could lead to a gain into $6.26-3/4 to $6.41 range. The rise from $5.47 consists of three waves.
The third wave, the wave c, is unfolding towards a range of $6.18 to $6.41.
A bullish pennant has been confirmed, suggesting a target near $6.41 as well.
A drop from the current level will be considered as a pullback towards the pennant. The pullback may end above $6.04.
On the daily chart, the contract has broken a resistance at $6.07-1/2.
The break opened the way towards $6.26-1/4.
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A falling trendline points at a slightly higher target.
Even though the current calculation suggests the reversal of the downtrend form $7.05-1/2, wave pattern indicates a likely reversal of the longer trend from the May 17 high of $7.60.
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