SINGAPORE: CBOT March corn may revisit its Wednesday low of $5.82 per bushel, as the big volatility over the past two days signals the formation of a top.
The roller coaster move on Wednesday represents a quick swing of the market sentiment to the bearish mode. It strongly suggests a reversal of the uptrend from $5.62-1/2.
Resistance is at $5.93-1/2, a break above could confirm a continuation of the uptrend towards the range of $6.00-3/4 to $6.05-1/2.
Even if the uptrend still remains steady, corn may retreat towards $5.82 again, to complete a correction. On the daily chart, the contract looks a bit neutral in a range of $5.83-3/4 to $5.95-1/2.
A break above $5.95-1/2 will not only lead to a gain to $6.02-1/2, but also confirm a bullish wedge, which will suggest a target of $6.20.
The bias could be towards the downside, as indicated by the readings on the hourly chart.
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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