SINGAPORE: CBOT corn December may test a support at $5.24 per bushel, a break below which could open the way towards $4.97-1/4.

The deep drop on Tuesday confirms a continuation of the downtrend from the June 10 high of $6.28-1/4. The trend is riding on a wave C, which may travel to $4.97-1/4.

The contract is pulling back towards a short rising trendline. The pullback may end around a resistance at $5.40-3/4.

On the daily chart, either the consolidation within a big wedge has extended, or the downtrend from the May 7 high of $6.38 has resumed.

The current fall is presumed to have been driven by a wave e. As long as corn remains above $5.23, it is still likely to resume its uptrend.

A break below this level could open the way towards $4.90-1/2.

The pattern looks bullish. It will be confirmed when corn breaks the uptrend line resistance around $6.20.

The contract is believed to be riding on a wave V, which could prove to be a wave d, to be followed by a downward wave e, if corn fails to go above the upper trendline.

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