SINGAPORE: CBOT May corn may drop more into a range of $6.47-1/2 to $6.50-3/4, after its failure to break a resistance at $6.67-1/4 per bushel.
The failure was followed by a drop so deep that it confirmed a completion of a wave c, which could be well broken down into five smaller waves.
The bullish target indicated by the inverted head-and-shoulders is no longer valid. It will only be restored if corn could break a resistance zone of $6.59-3/4 to $6.62-3/4. On the daily chart, a shooting star formed on Monday, around a falling trendline.
The indication is clear that wheat did not plan to break the trendline and reverse the downtrend from $7.12. That is because the downtrend is riding on a wave (C) which may eventually travel below $5.92-3/4.
Strong as it is, the uptrend from the March 10 low of $6.06-3/4 is still categorized as a part of this wave. A break above $6.66-3/4 may led to a gain limited to $6.73-3/4.