Monday, 03 August 2015 11:52
SINGAPORE: CBOT September corn may break a support at $ 3.66-1/2 per bushel and fall towards the next support at $ 3.63-1/2, as indicated by a Fibonacci projection analysis.
The contract is riding on a wave 5, the fifth wave of a five-wave cycle that developed from the July 14 high of $ 4.43-1/4. This wave may eventually travel to $ 3.49-3/4, the 400 percent Fibonacci projection level of the downtrend that started at the July 16 high of $ 4.38-3/4. The lower channel line of a falling channel suggests a similar target.
The immediate support is at $ 3.66-1/2, the 323.6 percent level, which temporarily blocks the way towards the 338.2 percent level at $ 3.63-1/2. A bounce from the current level may be capped at $ 3.68-3/4.
