CBOT Corn Oil May Retest Resistance At $6.76 -1/4

corn futures

SINGAPORE: CBOT corn may retest a resistance at $6.76-1/4 per bushel, a break above which could lead to a gain into a range of $6.81-1/4 to $6.86-1/4 range.

The current bounce may consist of three small waves. The wave c is expected to travel to $6.81-1/4.

The bounce is considered as a consolidation around a rising trendline. Given that the uptrend from $5.61-3/4 has reversed, the consolidation could be short-lived, to be followed by a continuation of the downtrend.

A break below $6.66-3/4 may open the way towards $6.52-1/2 to $6.59-3/4 range. On the daily chart, corn failed twice to break a pivotal resistance at $6.88.

CBOT corn may rise into $6.76-1/4 to $6.81-1/4 range

The failure indicates an extension of the downtrend from $7.66-1/4.

The stabilization around a support of $6.64 looks temporary as the low volatility over the past three days shows a cautious market sentiment, which will not suffice for a strong rise.