This is the third wave of a presumed three-wave cycle from the May 13 low of $3.43. It is capable of travelling into the range of $4.44-1/2 to $4.66-3/4.
The correction from the May 29 high of $4.38 has been shaped into a flag, which points at a more aggressive target at $5.03-1/4.
Support is at $4.22, a break below which could cause a loss to $4.14-3/4. On the first month continuous chart, corn is retesting a resistance range of $4.29 to $4.45-3/4, formed by the 23.6% retracement of the downtrend from $8.48-3/4 to $3.01 and the 100% projection level of an upward wave (C) from $3.55-1/2.
A break above $4.45-3/4 could lead to a gain to $5.08-1/4.
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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. **