SINGAPORE: CBOT July corn is biased to break a support at $3.91-1/4 per bushel and fall to the next support at $3.87, as suggested by its wave pattern and a projection analysis.
The uptrend from the May 13 low of $3.43 has ended, as confirmed by the drop from the May 21 high of $3.99. The drop consists of three waves. So far, only two have completed. The third wave labelled c is travelling towards a range of $3.82-1/2 to $3.87.
A break above $3.96-3/4 could signal the continuation of the uptrend towards $4.05-1/2. On the daily chart, a retracement analysis on the fall from $4.45 to $3.43 reveals a resistance at $3.94, the 50% level, around which, two spinning tops formed on Tuesday and Wednesday. These two patterns suggest a slim chance of corn to break $3.94.
Most likely, the contact would fall towards $3.81-3/4.
* 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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