The resistance is provided by the 50 percent retracement on the downtrend from $3.90 to $3.51-1/2. Wave pattern suggests the progress of an upward wave c from $3.58-1/2.
A projection analysis indicates a target of this wave at $3.73, the 100 percent level. Once the contract rises to this point, it is likely to extend gains to $3.75-1/4.
Support is at $3.69-1/2, a break below which could cause a loss to $3.66. On the daily chart, corn has broken resistance at $3.68-1/2, the 86.4 percent projection level of a downward wave C from $4.03-1/4. It is expected to test $3.72-1/2, a break above which could lead to a gain to $3.78-1/2.
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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. **