CBOT corn biased to fall towards $3.64

28 Jan, 2016


SINGAPORE: CBOT March corn is biased to break a support at $3.67-1/2 per bushel and fall towards the next support at $3.64, as indicated by a Fibonacci retracement analysis and falling channel.

The retracement analysis is on the downtrend from the Dec. 18, 2015 high of $3.79-1/2 to the Jan. 7 low of $3.48-1/2.

It reveals the contract has been hovering below a resistance at $3.72, the 76.4 percent level, for several days.

The chance of a break above this barrier has become very low. In addition, a falling channel also suggests corn may fall towards $3.53.

A break above $3.72 could lead to a gain to $3.75-1/4, the 86.4 percent level.

Copyright Reuters, 2016

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