SINGAPORE: CBOT September corn may fall into a range of $4.21-1/4 to $4.26-1/4 per bushel, as it has resumed the downtrend from $4.68-3/4.
The trend was disrupted by a bounce from $4.13-1/4. The bounce seems to have ended around a falling trendline. Strategically, a break below the immediate support at $4.34-1/4 could confirm the target range.
The intact trendline indicates a steady downtrend which is extending towards $4.13-1/4. A break above $4.41 could lead to a gain into the range of $4.47-1/2 to $4.55-1/2.
On the daily chart, corn failed to break a resistance at $4.41-1/4, the 23.6% retracement of the uptrend from $3.52-1/2 to $4.68-3/4. The failure suggests the formation of a head-and-shoulders, which could only be confirmed when the contract breaks $4.10-1/2.
* 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. **