CBOT CORN MAY RETEST SUPPORT AT $3.85-1/2
Friday, 20 May 2016 16:08
imageSINGAPORE: CBOT July corn may retest a support at $3.85-1/2 per bushel, a break below which could cause a loss to the next support at $3.81.
The deep fall on May 19 suggests an extension of a wave B, which started at the April 21 high of $4.07-1/4. A Fibonacci projection analysis reveals the mathematical relation between the current move and the preceding fall from $4.07-1/4.
The 38.2 percent level at $3.85-1/2 and the 50 percent level at $3.81 work as two supports while the 23.6 percent level at $3.91 as resistance. Eventually, the wave B may extend to $3.76, its 61.8 percent level.
A break above $3.91 could lead to a gain to $3.94-3/4, the 14.6 percent level.