Thursday, 12 November 2015 13:42
SINGAPORE: CBOT March corn is expected test a resistance at $ 3.73 per bushel, a break above which could lead to a gain to $ 3.75-3/4.
The contract has broken a lower resistance, the 100 percent Fibonacci projection level of a downward wave C, which is the third wave of a presumed three-wave cycle from the Oct. 7 high of $ 4.10. The next resistance will be at $ 3.73, the 86.4 percent level.
This wave may eventually travel into a range of $ 3.52-1/2 to $ 3.59, formed by its 161.8 percent and the 138.2 percent Fibonacci projection levels. As a result, the current bounce is unlikely to extend to $ 3.75-3/4, the 76.4 percent level.
A drop to $ 3.68 could signal the resumption of the wave C towards $ 3.65-1/2, the 114.6 percent level.
