SINGAPORE: CBOT March corn remains neutral in a range of $3.79-3/4 to $3.82-3/4 per bushel, and an escape could suggest a direction.
The range is formed by the 38.2 percent and the 23.6 percent retracements of the uptrend from $3.67-1/4 to $3.87-3/4. A break below $3.79-3/4 could cause a loss into the range of $3.75 to $3.77-1/2. A break above $3.82-3/4 could lead to a gain to $3.84-3/4 or $3.86-1/4.
Wave pattern suggests corn is biased to break $3.79-3/4 and fall towards $3.77-1/2, as the correction from the Jan. 8 high of $3.84-1/2 may consist of three waves. So far, only two waves have unfolded. The third wave labelled c could travel to $3.77-1/2.
On the daily chart, corn faces a resistance established by a falling trendline. This resistance also makes a drop more likely.
* 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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