These resistances are identified as the 100% and the 123.6% projection levels of an upward wave (3) from $3.87. This wave is expected to travel to its 161.8% level at $4.77-1/2 soon.
The gap forming between Tuesday and Wednesday is defined as a runaway gap which signals an acceleration of the rally. Support is at $4.29-3/4, a break below which could cause a loss limited to $4.21-1/2.
On the first month continuous chart, corn has cleared a resistance at $4.29, the 23.6% retracement of a long-term downtrend from $8.43-3/4 to $3.01. It is expected to eventually surge to $5.08-1/4.
However, this target could be too far away. A projection analysis reveals a realistic target zone of $4.45-3/4 to $4.61-3/4, formed by the 100% and the 114.6% projection levels of an upward wave (C).
* Charts are not available in reports received in email box through "Alert". To get charts, use the news code of to retrieve the original reports.
** 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. **