SINGAPORE: CBOT September corn is expected to fall towards $4.04-3/4, as it has broken a support at $4.17-3/4 per bushel.
The support is identified as the 76.4% projection level of a presumed wave C from $4.60. This wave may extend to the next support at $4.04-3/4.
A retracement analysis on the uptrend from $3.52-1/2 to $4.68-1/2 reveals an immediate support at $4.10-1/2, the 50% level. Given that all the former retracements worked as supports, this 50% level should not be ignored.
Strategically, the target at $4.04-3/4 will be available only when corn breaks $4.10-1/2. A break above $4.17-3/4, now a resistance, may lead to a gain to $4.25-3/4.
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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. **
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