Monday, 16 March 2015 13:45
SINGAPORE: CBOT May corn is expected to fall to $ 3.74-1/4 per bushel, as it has broken a support at $ 3.80-1/4.
The support was provided by the 38.2 percent Fibonacci projection level of a downward wave C, the third wave of a three-wave cycle that developed from the Dec. 29, 2014 low of $ 4.25-1/4.
The next support will be at $ 3.74-1/4, the 50 percent projection level, a break below which will open the way towards the 61.8 percent level at $ 3.68. Over the next few trading sessions, this wave C may travel to $ 3.48-1/2, the 100 percent level.
A break above $ 3.80-1/4, the 38.2 percent level, could trigger a limited gain to $ 3.85, a resistance established by the lower trendline of a wedge.
Copyright Reuters, 2015
