COMMODITIES (B-Trams):Cbot corn futures after the dip rally it turns to in volatile trading and it could touch to $6.55 level, next week.
The substantial fall from the high of $6.44 on Thursday suggests that the rally from the low of $6.06-3/4 on March 10 has come to an end. howerver corn production as per USDA to drop 1% from last year to 87.7 million acres putting pressure on corn prices.
Howerver , cbot corn futures bounce could be roughly divided into five waves, indicating completion in a structure. There may be three legs to the fall, but only the first leg has ended so far.
The second leg is in the process of progressing, and it is likely to end somewhere in the $6.35-1/4 to $6.38-1/2 range.
A rise into the $6.41-1/2 to $6.48-1/4 range could result from a break above $6.38-1/2. A gain of this magnitude will confirm an inverted head-and-shoulders pattern, indicating a target price of $6.70. Corn appears neutral on the daily chart, ranging from $6.27-1/4 to $6.38-1/4.
A break below $6.27-1/4 could open the door to the range of $6.09-1/2 to $6.15-1/2, while a break above $6.38-1/4 could open the door to the range of $6.47-$6.56.