SINGAPORE: A bullish target at $4.03-1/4 per bushel has been temporarily aborted for CBOT July corn . It will only be resumed when the contract goes above its May 21 high of $3.99.
The target is the Nov. 8, 2018 high. A retracement analysis on the fall from this high to $3.43 reveals a resistance at $3.95, the 86.4% level, around which a spinning top formed on Tuesday. This pattern suggests a dissipation of the bullish momentum.
Another retracement analysis on the fall from $4.45 to $3.43 marks a similar resistance at $3.94, the 50% level. The uptrend from $3.43 may have peaked at $3.99.
A projection analysis on the hourly chart shows that corn failed to break a resistance range of $3.96-3/4 to $4.00-1/4, formed by the 76.4% and the 86.4% projection levels of an upward wave c from $3.68-1/4. Due to this failure, corn is unlikely to gain more to $4.05-1/2.
This target at $4.05-1/2 will become valid again when corn rises above $3.99.
* 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. **
Comments
Comments are closed for this article.