SINGAPORE: CBOT corn may break a resistance at $7.38 per bushel and rise into $7.49-1/2 to $7.56-3/4 range.

The drop from the May 7 high of $7.35-1/4 has been driven by a wave (4), which turned out to be much shorter than expected. It has almost reversed by the current wave (5).

A rising trendline suggests an extension of this wave (5) towards $7.80, which could be too far away to be realistic. Strategically, it is better to target $7.56-3/4 first.

Support is at $7.19-1/4, a break below which could cause a fall to $7.07-1/2. On the daily chart, the black candlestick forming on Monday was deeply pierced by a white candlestick the next day.

Such a combination suggests a strong bullish sentiment, which simply ruins the least chance of a deep correction. Wave pattern suggests a further extension of the uptrend.

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