SINGAPORE: CBOT May corn may test a resistance at $3.64-3/4 per bushel, a break above which could lead to a gain to $3.68. The resistance is identified as the 38.2 percent retracement on the downtrend from $3.80-3/4 to $3.55-1/4. The bullish divergence on the hourly RSI suggests a further gain.
The bounces on April 1 and April 9 suggest that there is a strong support around $3.56. The support could be due to the completion of a five-wave cycle from the Nov. 8, 2018 high of $3.97-3/4.
A projection analysis on the daily chart provides a clear answer that corn has found a strong support at $3.56-1/4, the 100 percent projection level of a downward wave (c) from $3.97-3/4. Chances are a double-bottom could form around $3.56-1/4, which will be confirmed when corn breaks $3.66.
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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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