SINGAPORE: CBOT December corn may test a support at $3.43-1/2 per bushel, a break below which could cause a loss to the next support at $3.40-1/2.
These supports are identified respectively as the 38.2 percent and the 23.6 percent Fibonacci retracements on the downtrend from the Oct. 25 high of $3.55-1/4 to the Nov. 16 low of $3.36-1/4.
Corn failed to break both a falling trendline and a resistance at $3.45-3/4. The failure has triggered a correction, which could extend to $3.40-1/2, as suggested by the bearish divergence on the hourly RSI.
A break above $3.45-3/4 could lead to a gain at $3.47-3/4.
Source: Brecorder.com
