CBOT corn may retest resistance at $3.78-3/4

SINGAPORE: CBOT December corn may retest a resistance at $3.78-3/4 per bushel, a break above which could lead to a gain to $3.84-1/4.

The resistance is provided by the 100 percent projection level of an upward wave c from $3.54-1/2. This wave could extend a lot, as suggested by a confirmed inverted head-and-shoulders, which developed from the Aug. 29 low of $3.55-1/4. The pattern indicates a target around $3.95.

Support is at $3.75-1/4, a break below which could cause a limited loss to $3.73.

On the daily chart, corn broke a resistance at $3.76, the 38.2 percent retracement on the downtrend from $4.30 to $3.43. It could be heading towards $3.86.