SINGAPORE: A bearish target at the July 2 low of $4.13-1/4 per bushel has been aborted for CBOT September corn. It will only be resumed when the contract breaks a support at $4.26-1/4.
The support is provided by the 23.6% retracement of the fall from $4.68-3/4 to $4.13-1/4. The strong bounce triggered by this barrier indicates an extension of the uptrend from $4.13-1/4.
A rise to $4.37 could confirm a break above $4.34-1/4 and a target at $4.41. A further gain would signal a reversal of the downtrend from $4.68-3/4.
On the daily chart, the pattern from the May 29 high of $4.47-1/4 looks like a head-and-shoulders. However, the white candlestick forming on Wednesday significantly reduces the likelihood of this pattern.
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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. **
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