CBOT corn may bounce to $3.75-1/4

The support is provided by the 100 percent projection level of a downward wave C, the third wave of a three-wave cycle from $3.97-3/4.

The bullish divergence on the hourly RSI suggests a bounce is due, which may be triggered by the support at $3.72-1/4. This bounce could be regarded as a pullback towards the Jan. 27 low of $3.75.

A break below $3.72-1/4 could confirm the continuation of the wave C towards $3.68-3/4. In the continuous daily chart of the first month contract, a rising wedge has been confirmed as a bearish pattern. The contract is riding on a wave C which is capable of traveling to $3.27-1/4.

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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. **