SINGAPORE: CBOT March corn may retest a resistance at $5.87-1/4 per bushel, a break above which could lead to a gain into $5.91 to $5.96-3/4 range.
The current rise is considered as an extension of an upward wave C from $5.57-1/2. This wave may travel to $5.96, as pointed by a rising trendline.
However, its repeated failures to break $5.91 also cast some doubt on this assumption.
The consolidation below the resistance is taking the shape of a rising wedge, which is highly likely to become a top pattern.
A break below $5.77 will confirm this pattern.
On the daily chart, a bigger wedge is forming, which may turn out to be a top pattern as well. A total of five waves make up the uptrend from $5.16-1/4. The wave v is unfolding towards $5.95-1/2.
A projection analysis reveals a support at $5.76-3/4, which is equivalent of $5.77 on the hourly chart.
A break below this support could suggest a completion of the wave v.
Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.
Source: Brecorder
