The resistance is identified as the 50 percent projection level of a wave C from $3.67-1/4. After a few failures, corn pierced above this resistance again. This time, it may succeed in overcoming this barrier.
The next resistance will be at $3.89-1/4, a break above which could lead to a gain to $3.94-1/2. A drop to $3.83 could signal the fourth failure of the contract to break $3.85. However, only a break below $3.80-3/4 could confirm the formation of a temporary top around $3.85.
On the daily chart, the contract is poised to break a resistance at $3.86, the 38.2 percent retracement on the downtrend from $4.37 to $3.54-3/4. The break will be confirmed when corn rises to $3.87. It could open the way towards $3.95-3/4.
* Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.
No information in this analysis should be considered as being business, financial or legal advice. 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.