Tuesday, 31 March 2015 11:11
SINGAPORE: CBOT May corn is poised to break a resistance at $ 3.96 per bushel and rise more towards the next resistance at $ 4.03, as indicated by a Fibonacci retracement analysis.
These two resistances are identified respectively as the 50 percent and the 61.8 percent retracements on the fall from the Dec. 29, 2014 high of $ 4.25-1/4 to the March 18 low of $ 3.67. The resistance at $ 3.96 triggered a shallow correction, which has ended around a support at $ 3.89-1/4, the 38.2 percent level.
The recovery of the price from the March 26 low of $ 3.89-1/4 signals a continuation of the uptrend rising from $ 3.67. A break below $ 3.89-1/4 will open the way towards $ 3.80-3/4, the 23.6 percent retracement.
Copyright Reuters, 2015
