These supports are identified as the 23.6% and the 38.2% retracements on the uptrend from $3.43 to $4.38. The five-wave structure of the trend and the deep fall from $4.38 confirms corn has temporarily peaked at $4.38.
Over the next few days, the main theme will be a correction which may extend into the range of $3.90-1/2 to $4.01-1/2. Resistance is at $4.24, a break above which could lead to a gain to $4.31-1/4.
On the first month continuous chart, corn failed to break a resistance at $4.29, the 23.6% retracement of a long-term downtrend from $8.43-3/4 to $3.01. It may retrace to a support at $4.03-1/2, the 61.8% projection level of an upward wave (C) from $3.35-1/2.
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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. **