SINGAPORE: CBOT corn may test a support at $6.67 per bushel, a break below which may open the way towards $6.58-1/4. A rising trendline from $5.61-3/4 has been broken.
The break confirmed a reversal of the uptrend from this level.
A retracement analysis on the trend reveals two supports, respectively at $6.66-3/4 and at $6.46-3/4.
The first support triggered a decent bounce, which failed to go above the previous high of $6.99-1/2.
The failure satisfies the first condition for a trend reversal.
CBOT corn may retest support at $6.77-1/4
With the violation of the trendline, it is not necessary to wait until the Sept. 28 low of $6.73-1/4 is broken before concluding the reversal of the uptrend.
A break above $6.77-1/4 may lead to a gain to $6.81-1/2. On the daily chart, the downtrend from $7.66-1/4 consists of three waves.
The wave (C) could be unfolding $5.61-3/4. A realistic target will be $6.64.
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