SINGAPORE: CBOT corn may rise into a range of $6.75-1/2 to $6.82-3/4 per bushel, as suggested by a projection analysis.
The current rise looks full of momentum. It observes closely a set of projection levels on the uptrend from $6.01-3/4.
Following its surge above the 200% level of $6.63-3/4, corn has a better chance of rising to $6.82-3/4.
A break below $6.63-3/4 may be followed by a drop towards $6.56-1/4.
On the daily chart, the contract faces a resistance at $6.70.
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A break above this level could confirm a price range from $6.70 to $7.14-1/4 defined by the upper channel, while a failure may be followed by a shallow correction.
A projection analysis on the uptrend from $5.83 reveals a break above the 100% level of $6.53-1/2.
The uptrend is highly likely to extend into $6.97 to $7.14-1/4 range.
Even though it is certain that corn would gain more, the uncertain part is how it is going to overcome the barrier at $6.70.
The contract may succeed in its current attempt or the second attempt.
The strong momentum built on Tuesday may easily push the price above $6.70 on Wednesday.
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