SINGAPORE: CBOT May corn is biased to test a support at $6.25-1/2 per bushel, a break below which could open the way towards the $6.17-1/2 to $6.22-1/4 range. The deep fall from the Thursday high of $6.44 suggests the completion of a bounce from the March 10 low of $6.06-3/4.
The bounce could be roughly divided into five waves, a structure further indicating the completion. The fall may consist of three legs and, so far, only the first leg has ended. The second leg is developing, which is likely to finish in the $6.35-1/4 to $6.38-1/2 range.
A break above $6.38-1/2 may lead to a gain into the $6.41-1/2 to $6.48-1/4 range. Such a gain will confirm an inverted head-and-shoulders, pointing towards a target of $6.70. On the daily chart, corn looks neutral in a zone of $6.27-1/4 to $6.38-1/4.
CBOT corn may retest resistance at $6.38-1/2
A break below $6.27-1/4 could open the way towards the $6.09-1/2 to $6.15-1/2 range, while a break above $6.38-1/4 could lead to a gain into the $6.47-$6.56 range.