SINGAPORE: CBOT corn is expected to retest a resistance at $5.86-1/4, following its failure to break a support at $5.66-1/4 per bushel.
The failure is coupled with a bullish divergence on the hourly RSI, suggesting the formation of a temporary bottom around the support.
The contract may bounce further, to keep pulling back towards a triangle.
However, such patterns are generally less reliable.
CBOT corn targets $5.54
A break above $5.86-1/4 could make the triangle invalid.
A fall below the July 22 low of $5.62 may be extended into the range of $5.34-1/4 to $5.54.
On the daily chart, the downtrend from $7.78-3/4 remains steady within a falling channel.
It is riding on a wave e, which may travel into $5.21-3/4 to $5.51-1/2 range. Only that the journey towards the target zone may not resume until the current bounce is over.