CBOT March corn may retest a support at $3.96 per bushel, a break below which will lead to a further loss to $3.91. The support is provided by the 50 percent Fibonacci retracement on the rise from the November 20 low of $3.75-1/4 to the December 29 high of $4.17, and it has temporarily stopped the sharp fall.
However, the support looks vulnerable based on the speed of the fall which has been driven by a very strong bearish momentum. A moderate rebound has been triggered, which could hardly extend to $4.01, the 38.2 percent level. A drop to $3.95 may confirm both a break below the support and the target at $3.91.
Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own. No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.
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