The resistance and the support are identified as the 123.6 percent and the 138.2 percent projection levels of a wave C from $3.95. The circled part of the chart looks like an inverted head-and-shoulders, with the right shoulder developing towards $3.63-1/2.
A break above $3.66-3/4 could lead to a gain to $3.70-12, while a break below $3.63-1/2 could cause a loss to $3.60-3/4. It is a bit strange that market reacted so drastically to the support at $3.60-3/4, which is the 150 percent level.
A study on the daily chart provides a clue. The support almost coincides with another one at $3.60-1/4, the 61.8 percent projection level of a presumed wave C from $4.04-3/4. Based on this wave count and the projection analysis, corn may rebound into the range of $3.68-3/4 to $3.77.
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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. **