SINGAPORE: CBOT March corn is expected to fall to $3.81-1/4 per bushel as it has broken support at $3.85.
Support was at the 14.6 percent Fibonacci projection level of a presumed wave C, the third wave of a three wave cycle that developed from the Jan. 30 low of $3.65-3/4.
The next support will be at $3.81-1/4, the Feb. 12 low and the starting point of the wave C. The latest development of this wave indicates a slim chance of its extension.
Resistance is at $3.85, the 14.6 percent level, a break above which could lead to a further gain to $3.87 1/2, the 23.6 percent level.
Wang Tao is a Reuter’s market analyst for commodities and energy technical. The views expressed are his own.
No information in this analysis should be considered as being business, financial or legal advice. 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.