CBOT corn may test resistance at $3.83-1/4

• A fall below the Jan. 27 low of $3.77-1/4 would strongly signal the completion of the bounce from the Dec. 11, 2019 low of $3.71.
• Support is at $3.80, a break below which could cause a fall to $3.78-1/4.

SINGAPORE: CBOT March corn may test a resistance at $3.83-1/4 per bushel, a break above which could lead to a gain to $3.85-3/4.

The resistance is identified as the 38.2pc projection level of an upward wave C from $3.75-1/4.

This wave consists of five small waves. The third wave labelled C-3 is unfolding.

Support is at $3.80, a break below which could cause a fall to $3.78-1/4.

It is critical that corn hovers above $3.78-1/4, as a fall below which could prove the current wave count incorrect and a bearish target at $3.71 will be established accordingly.

On the daily chart, corn seems to be stabilizing above a rising trendline. However, there are more black candlesticks than the white ones since Jan. 24. Such a combination casts some shadow on whether the contract could climb towards $3.91-3/4.

A fall below the Jan. 27 low of $3.77-1/4 would strongly signal the completion of the bounce from the Dec. 11, 2019 low of $3.71.