SINGAPORE: CBOT corn may break a resistance at $7.01-3/4 per bushel, and rise towards the May 11 high of $7.32-1/2.

The contract is riding on a wave (3), the most powerful wave of a five-wave cycle from $6.02-3/4. The gap on Monday confirmed this fierce wave.

This gap is classified as a runaway type, which may not be covered. That means the gap itself works as a strong support to prevent any drop from the current level.

On the daily chart, corn could be riding on an extended fifth wave which is often seen in commodity markets. The third part of this wave, labelled 5-3, is developing rapidly towards $7.35-1/4. Based on this wave count, corn may at least rise to $8.19-3/4.

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