SINGAPORE: CBOT corn may revisit its July low of $5.62 per bushel in the fourth quarter, as suggested by its wave pattern and a projection analysis.
A five-wave cycle from the April 2020 low of $3.00-1/4 has completed at April 2022 high of $8.27, as confirmed by the deep drop from this high.
The drop consists of three waves.
The wave B ended around a resistance at $7.34-1/2, the 61.8% projection level of the cycle. The wave C is unfolding towards $5.62, the bottom of the wave A. The former is capable of travelling far below $5.62.
Most likely, it will extend to $5.01-1/4.
CBOT corn may test resistance at $6.71-3/4
The uptrend from $3.00-1/4 may resume, upon the completion of the wave C around $5.01-1/4, as the trend is considered as a part of a big bull cycle from the 1987 low of $1.42.
The trend has only partially completed, as revealed by a projection analysis that the trend temporarily peaked around $8.37, the 76.4% level of a wave (C).
A break below $5.01-1/4 could open the way towards $4.24-1/2 to $4.66-1/2 range.
On the daily chart, a projection analysis on the downward wave C from $7.25 suggests a target zone of $4.59-1/2 to $5.60-3/4.
In addition to the projection levels, the fall observes closely a set of retracements on the downtrend from $8.27 to $5.61-1/2.
Immediate resistance is at $6.94-1/4, a break above which could lead to a gain into $7.25-1/2 to $7.64 -1/4 range.