CBOT corn may retest support at $5.36-1/2

SINGAPORE: CBOT corn may retest a support at $5.36-1/2 per bushel, a break below which could open the way towards $5.26 to $5.32-1/2 range.

The deep fall on Monday confirmed a completion of the bounce from the Aug. 23 low of $5.29-1/2. The downtrend from $5.82 may have resumed.

The trend observes closely a set of projection levels. The 161.8% level of $5.36-1/2 served as a support and triggered a bounce.

The bounce may end below a resistance zone of $5.47-1/4 to $5.49-3/4.

A further gain above $5.49-3/4 could signal the extension of the bounce towards $5.54 to $5.57-3/4 range.

On the daily chart, the big black candlestick on Monday wiped out the gains in the preceding few days. This drastic move suggests a prevailing bearish sentiment and a possible resumption of a wave c from $5.94-1/4.

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