SINGAPORE: CBOT September corn may bounce to $3.70-1/2 per bushel, as it seems to be stabilizing around a support at $3.57.
The support is provided by the 186.4pc projection level of a downward wave C from $4.60. This wave looks exhausted, as it failed twice to travel below $3.57.
The bullish divergence on the hourly RSI confirms the exhaustion of the downtrend. It strongly indicates a decent bounce is due. A break below $3.57 may cause a fall to $3.49-1/2.
On the daily continuous chart, corn failed to fall towards $3.53, the 86.4pc retracement on the uptrend from $3.35-1/2 to $4.64-1/4.
It is pulling back towards $3.66. Further bullish signal is a spinning top forming on Aug. 15, which indicates a completion of the sharp fall from the Aug. 9 high of $4.17.
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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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