CBOT September corn (CU26) may break resistance at $4.12-3/4 per bushel and bounce further to $4.15-1/2.
The contract stabilized around a support at $4.08-1/2, the 100% projection level of a wave c from $4.26-3/4. The stabilization suggests a completion of this wave or its first part.
A break below $4.08-1/2 could confirm the extension of the wave c toward $4.04-1/4 to $4.05-3/4 range. On the daily chart, a downtrend from $4.90 is ending.
Not only does the wave structure suggest completion, but the bullish divergence on the daily RSI also supports this view. The market is riding on a wave 5, which is supposed to be roughly equal to the wave 1, and could extend to $3.99-3/4.
The possible pattern of the move would be a bounce followed by shallow drop, before the downtrend reverses.
** Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own. His analyses are exclusively published on the Workspace platform - London Stock Exchange product.
** No information in this analysis should be considered business, financial, or legal advice. Each reader should consult their own professional or other advisers for business, financial, or legal advice regarding the products mentioned in the analyses.