CBOT corn may retest resistance at $3.50-3/4

SINGAPORE: CBOT May corn may retest a resistance at $3.50-3/4 per bushel, as it could have completed a downtrend from the March 25 high of $3.80-3/4.

The reversal of the trend was indicated by the fierce bounce from the Thursday low of $3.42-1/4. The reversal looks more reliable as it occurred around a key support at $3.41-1/2, the 100 percent projection level of a downward wave c from $3.66-1/4.

Indeed, the wave c may have completed. A break below $3.47-1/4 could cause a loss limited to the range of $3.41-1/2 to $3.44-3/4.

On the daily chart, corn has found a support at $3.41, the 138.2 percent projection level of a downward wave (c) from $3.98-1/2. It may bounce more towards the lower trendline of a wedge around $3.57.