SINGAPORE: CBOT corn may break a resistance at $6.79-3/4 per bushel and rise into $6.90-3/4 to $6.99-1/2 range, driven by a wave C.
This wave started at $5.87-1/2, which is expected to travel to $6.90-3/4, as it has extended far above its 100% projection level of $6.62-1/4.
The depth of the correction from the Aug. 24 high of $6.71 also suggests the target of $6.90-3/4.
Support is at $6.73, a break below could open the way towards $6.62-1/4 to $6.67-1/4 range.
On the daily chart, corn could be accumulating momentum to test a resistance at $6.88.
Corn falls from 2-month high, lower US crop outlook curbs losses
Generally, the 61.8% retracement works as a strong barrier, which may trigger a correction.
This resistance is expected to join hands with the one at $6.90-3/4 on the hourly chart to temporarily stop the rise. A break above $6.88 to $6.90-3/4 range could lead to a gain to $7.17-3/4.
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