SINGAPORE: CBOT corn may test a support at $6.25-1/4 per bushel, a break below which could open the way towards $6.17-1/4 to $6.20-3/4 range.
Following its failure to break a resistance at $6.40, the contract broke a support at $6.32-3/4.
The next support will be at $6.25-1/4.
The uptrend from $5.83 could be clearly broken down into five waves.
Such a structure and the sudden increased volatility on Aug. 12 strongly suggest a completion of the wave (c).
An immediate target could be $6.20-3/4, near the bottom of the wave 4, while an aggressive target is $5.83, the bottom of the wave (b).
A break above $6.32-3/4 could lead to a gain to $6.40.
On the daily chart, a hanging-man pattern formed on Aug. 12, after seven white candlestick from Aug. 3.
It suggests a due correction or a reversal of the short uptrend from $5.83.