SINGAPORE: CBOT May corn may test a support of $6.40-1/4 per bushel, a break below could open the way towards $6.35-1/4 to $6.38-1/2 range.
A projection analysis reveals that a wave 3 has travelled far below its 261.8% projection level of $6.48-1/4.
It has a big chance to extend into $6.35-1/4 to $6.38-1/2 range.
A decent bounce may occur when corn drops into this range, which engulfs a strong support of $6.36-3/4. Resistance is at $6.43-1/2, a break above which could lead to a gain into $6.45-1/4 to $6.48-1/4 range.
On the daily chart, two projection analyses reveal an almost identical support of $6.38, which may help stop the sharp drop as well.
Corn edges higher, set for second weekly drop on US planting outlook
It is not very clear how this anticipated bounce occurs.
It may start somewhere above $6.38 or after the price briefly pierces below this level.
The candlestick pattern on Tuesday may show early sign of such a bounce.
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