Tuesday, 04 August 2015 13:44
SINGAPORE: CBOT September corn is expected to test a resistance at $ 3.72 per bushel, with a good chance of breaking above this level and rising more towards the next resistance at $ 3.77-1/4.
The contract looks very much oversold, as suggested by the bullish divergence on the hourly MACD. A bottom seems to be forming around $ 3.66.
The wave pattern suggests that corn be riding on a wave 5, the fifth wave of a five-wave cycle that developed from the July 14 high of $ 4.43-1/4.
This could be a failed fifth wave, as it stopped around the July 30 low of $ 3.65-3/4. The immediate resistance will be at $ 3.72, the 300 percent level, which blocks the way towards $ 3.77-1/4, the 276.4 percent level.
