SINGAPORE: CBOT May corn may test a support at $5.29 per bushel, a break below which could open the way towards $5.22.

The contract is riding on a wave C, which started at $5.59-1/4. It may end around $5.29 or extend to $5.10-1/2. Three smaller waves make up this wave. The wave (c) is unfolding towards its 100% projection level of $5.26-1/4.

This structure suggests an extension of the wave C towards $5.10-1/2. A further bounce from the current level may be limited to $5.37-1/2.

On the daily chart, corn is falling towards $5.25-1/4, as it has broken a support at $5.43. The drop from $5.72 may have been driven by a wave 4, which will be reversed by a wave 5.

Even though the big picture is clear that the uptrend remains steady, it is hard to tell where the wave 4 ends. A shallow wave 4 could end around $5.25-1/4 while a deep one may travel to $4.96-1/2.

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