SINGAPORE: CBOT March corn may end its current bounce below a resistance at $3.76 and then revisit its Jan. 15 low of $3.71 per bushel, as suggested by its wave pattern and a projection analysis.
The contract is riding on a wave C from $3.87-3/4. This wave has traveled below a rising trendline and the 61.8 percent projection level at $3.73-1/4. The gain from $3.71 is classified as a pullback towards the trendline.
Over the next few weeks, the wave C may extend to $3.64-1/2. A break above $3.76 could lead to again to $3.78-3/4. A retracement analysis on the downtrend from $4.37 to $3.54-3/4 reveals that corn briefly pierced below a support at $3.74. It is likely to drop more to $3.66-3/4.
* Charts are not available in reports received in email box through "Alert". To get charts, use the news code of TECH/C to retrieve the original reports.
** 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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