SINGAPORE: CBOT May corn is biased to test a resistance at $7.66 per bushel, a break above which could lead to a gain into $7.78-1/4 to $7.92-1/2 range.
The correction from the March 4 high of $7.82-3/4 is taking the shape of a wedge, which looks like a bullish continuation pattern, to be followed by a round of rally.
The contract is still facing a resistance around $7.58, established by the upper trendline of the wedge.
A rise above $7.66 could confirm this bullish pattern.
A break below $7.42-1/2 may cause a fall to $7.28-1/4.
On the daily chart, signals are a bit mixed as corn is stuck in a neutral range of $7.32-3/4 to $7.61-1/4.
South Korea’s MFG buys estimated 201,000 T corn in tender
A break above $7.61-1/4 may suggest a continuation of the uptrend, while a break below $7.32-3/4 could confirm an extension of the correction towards $7.15-1/4.
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