The range is formed by the 50 percent and the 76.4 percent retracements on the uptrend from $3.67-1/4 to $3.87-3/4. The wave structure of the downtrend from $3.87-3/4 indicates the development of a double-zigzag, which has seven waves in total.
The fourth wave labelled (x) may have ended around $3.82-3/4. The fifth wave labelled (a) is unfolding, which may travel into the range of $3.72-$3.75.
Strategically, the target zone of $3.72-$3.75 will be available when corn breaks $3.77-1/2. A break above $3.82-3/4 could lead to a gain to $3.87-3/4.
The correlation between corn and wheat quite often stays strongly positive. However, there were indeed periods on the daily chart when the correlation dropped to zero. It seems the correlation is weakening.
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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.