CBOT corn may retest support at $6.46-1/2
- The lower trendline suggests a target around $6.26-3/4, which is likely to be fulfilled over the next few days.
SINGAPORE: CBOT corn may retest a support at $6.46-1/2 per bushel, as the bounce triggered by this level could have completed.
The bounce was driven by a wave b, the second wave of a three-wave cycle from $7.17-1/2. The third wave labelled c is unfolding towards the range of $6.29-3/4 to $6.37-1/2.
These waves are controlled by a set of retracements of the uptrend from $6.02-3/4 and a set of projection levels on the drop from $7.17-1/2.
A break above the resistance zone of $6.67-3/4 to $6.73-1/2 could lead to a gain at $6.86-3/4.
On the daily chart, the consolidation within a wedge is ongoing.
The lower trendline suggests a target around $6.26-3/4, which is likely to be fulfilled over the next few days.
The wedge looks like a bullish continuation pattern. However, market is always full of surprises. It may turn out to be a top pattern if the support at $6.26-3/4 fails to hold.
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