SINGAPORE: CBOT July corn may briefly test a resistance at $3.66 per bushel, before pulling back towards a trendline support around $3.62.
The resistance is identified as the 38.2 percent retracement on the downtrend from $3.90 to $3.51-1/2. After breaking the trendline, corn is yet to pull back towards this line. The pullback may be triggered by the resistance.
A break above $3.66 could lead to a gain to $3.70-3/4. The current bounce is assumed to be as strong as the one from the March 11 low of $3.71. A falling channel points at a target of $3.70-3/4.
On the daily chart, corn has cleared a resistance at $3.63, the 100 percent projection level of a wave c from $4.03-1/4. It is heading towards $3.68-3/4.
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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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