CBOT corn may stabilize around $6.26-3/4
- A break below $6.26-3/4 may cause a drop to $6.01-1/4.
SINGAPORE: CBOT corn may stabilize around a support at $6.26-3/4 per bushel, and then test a resistance at $6.52-1/4.
The support is identified as the 50% retracement of a five-wave cycle from $5.18-1/2. It is near the bottom of a previous wave (4) at $6.35-1/2, which also provides a strong support.
Chances are high that corn ends its fall around these supports and rises towards the range of $6.52-1/4 to $6.84.
A break below $6.26-3/4 may cause a drop to $6.01-1/4.
On the daily chart, after two big black candlesticks, a smaller candlestick is developing, which may turn out be to a spinning top, or a doji or a white candlestick.
All these patterns signal a dissipation of the bearish momentum.
Indeed, after three days of consecutive losses, corn is due for a decent bounce as well.
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.