SINGAPORE: CBOT March corn may retest a resistance at $5.87-1/4 per bushel, a break above which could lead to a gain into $5.91 to $5.96-3/4 range.
The current rise is considered as an extension of an upward wave C from $5.57-1/2. This wave may travel to $5.96, as pointed by a rising trendline.
However, its repeated failures to break $5.91 also cast some doubt on this assumption.
The consolidation below the resistance is taking the shape of a rising wedge, which is highly likely to become a top pattern.
A break below $5.77 will confirm this pattern.
On the daily chart, a bigger wedge is forming, which may turn out to be a top pattern as well. A total of five waves make up the uptrend from $5.16-1/4. The wave v is unfolding towards $5.95-1/2.
A projection analysis reveals a support at $5.76-3/4, which is equivalent of $5.77 on the hourly chart.
A break below this support could suggest a completion of the wave v.
Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.