The bounce consists of three waves. The third wave labeled c ended around a resistance at $3.80-1/4, its 86.4 percent projection level.
A retracement analysis on the downtrend from $3.91 to $3.61 reveals a similar resistance at $3.79-1/2, the 61.8 percent level. These two resistances could have worked together to end the bounce.
On the daily chart, after hovering above $3.77 for three days, corn eventually fell below this resistance. The fall confirmed a false break above this level. The contract may retrace towards $3.68-3/4.
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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. **