CBOT corn may retest resistance at $5.43-1/4
- The contract stabilised around a support at $5.32-1/4, the July 26 low
SINGAPORE: CBOT corn may retest a resistance at $5.43-1/4 per bushel, a break above which may lead to a gain to $5.47-1/4 to $5.54 range.
The contract stabilised around a support at $5.32-1/4, the July 26 low, which is strengthened by another one at $5.32-1/2, the 176.4% projection level of a downward wave c from $5.82.
Corn failed twice to break these supports. The bullish divergence on the hourly RSI suggests a slim chance of the third attempt to test $5.32-1/4.
Instead, corn could rise into the range of $5.43-1/4 to $5.54. A break below $5.32-1/4 could open the way towards the range of $5.21-3/4 to $5.26.
On the daily chart, the doji forming on Monday suggests the temporary completion of the fall. Corn may keep pulling back towards $5.43.
The fall may resume, as it is riding on a big wave C from $6.28-1/4, which could travel to $4.90-1/2, its 100% projection level.
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