SINGAPORE: CBOT December corn may revisit its Aug. 28 low of $3.64-1/4 per bushel before bouncing again.
The first bounce has ended around a resistance at $3.78-1/4, the 23.6% retracement of the fall from $4.24-1/2 to $3.64-1/4. Three waves make up this bounce. The current wave b may extend to $3.64-1/4, to be reversed by the third wave labelled c.
Resistance is at $3.73, a break above which could confirm the progress of the wave c towards $3.78-1/4.
There is a good reason to believe corn could hover above $3.64-1/4 for a few more days, as this low is near the May 13 low of $3.63-3/4, which works as a strong support.
A break below $3.63-3/4 could confirm the extension of the downtrend towards $3.50, as suggested by a falling trendline.
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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. **