SINGAPORE: CBOT May corn may break a resistance at $3.72-1/4 per bushel and rise towards the next resistance at $3.76, as it could have completed a correction triggered by the latter.
The correction seems to have been driven by a wave b, the second wave of a three-wave cycle from $3.61. The third wave labeled c could have started, unfolding towards a range of $3.76-1/2 to $3.82-1/4, formed by its 61.8 percent and the 100 percent projection levels.
Strategically, the target at $3.76-1/2 will be confirmed when corn breaks the nearest resistance at $3.72-1/4, the 38.2 percent retracement of the downtrend from $3.91 to $3.61.
On the daily chart, corn has managed to stabilise around a support at $3.68-3/4, the 50 percent projection level of a downward wave C. It is poised to rise towards $3.77.
* 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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