SINGAPORE: CBOT March corn may retest a resistance at $6.46 per bushel, a break above which could lead to a gain into $6.49 to $6.53-3/4 range.
A five-wave cycle from $6.74 has completed at the Wednesday low of $6.35, as confirmed by the strong bounce from this low.
Three waves make up the bounce. So far, only two waves have unfolded.
The wave c is expected to travel into the target zone.
A more bullish scenario is a reversal of the downtrend from $7.11-3/4, as the trend could be well divided into five waves. Under this scenario, corn may rise to $6.74.
Support is at $6.39-1/2, a break below which could trigger a drop into $6.34-1/4 to $6.37 range.
CBOT corn may fall more into $6.37 to $6.41-3/4 range
On the daily chart, a pennant has been confirmed, indicating a target of $6.02-1/4.
A retracement analysis suggests the same target.
However, there was a false break below the immediate support of $6.40-1/4.
Corn is highly likely to bounce to $6.57 before resuming its downtrend.
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