Friday, 31 July 2015 15:22
SINGAPORE: CBOT Sept. corn may end its current bounce below a resistance at $ 3.80-1/4 per bushel and then fall towards a support at $ 3.72.
The resistance is provided by the 261.8 percent Fibonacci projection level of a downward wave 3, the third wave of a five-wave cycle that developed form the July 14 high of $ 4.43-1/4.
The current bounce is driven by a wave 4, which may roughly match the preceding wave 2 in both size and duration. The wave 3 has been developed within a falling channel, the upper channel of which has established a resistance around $ 3.80-1/4 as well.
Indeed, corn is facing a resistance at $ 3.77-1/4, the 276.4 percent level, it is doubtful if the contract could finally overcome this barrier and edge up to $ 3.80-1/4.