SINGAPORE: CBOT May corn could break a support at $3.51 per bushel and fall towards the next support at $3.47-1/4, probably after a weak bounce towards $3.57.
These supports are identified as the 114.6 percent and the 123.6 percent projection levels of a downward wave (c)from $3.98-1/2.
This wave is highly likely to extend to $3.41. A triangle has been confirmed, suggesting a realistic target at $3.47-1/4. It is quite certain that corn could fall further. However, the uncertain part is how far the current bounce could go.
This bounce is regarded as a pullback towards the lower trendline of a triangle. It is expected to be limited to the April 5 low of $3.55-1/4. A projection analysis on the hourly chart reveals a lower limit at $3.53-3/4, the 50 percent level of a downward wave c from $3.66-1/4.
* Charts are not available in reports received in email box through "Alert". To get charts, use the news code of 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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