CBOT corn may consolidate in $3.80-1/4 to $3.84-3/4 range

• The range is formed by the 38.2pc and the 61.8pc retracements of the downtrend from $3.92-1/4 to $3.73.
• The barrier at $3.84-3/4, corn has to consolidate for some time, or retrace towards $3.77-1/2.

The range is formed by the 38.2pc and the 61.8pc retracements of the downtrend from $3.92-1/4 to $3.73.

A longer downtrend from $4.11-3/4 has reversed, as it could be broken down into five small waves. The strong bounce from $3.73 confirms the reversal.

However, the contract faces a strong resistance at $3.84-3/4, which is strengthened by another similar one established by a falling trendline.

To overcome the barrier at $3.84-3/4, corn has to consolidate for some time, or retrace towards $3.77-1/2.

A break below $3.80-1/4 could open the way towards $3.77-1/2.

On the daily chart, a high-low bottom is developing.

A retracement analysis on the downtrend from $4.76 to $3.65-3/4 reveals a resistance at $3.81-3/4, around which, corn may move sideways for a while before rising towards $3.91-3/4.