CBOT September corn (CU26) may retest a resistance at $4.22-1/2 per bushel, a break above which could lead to a gain to $4.26-3/4.
The strong surge from $4.06-1/4 confirmed a completion of a three-wave cycle from $4.30-1/2. Further confirmation comes from the equality of the wave c and the wave a.
The peak of the wave b at $4.26-3/4 serves as a target. Support is at $4.17-3/4, a break below which could open the way toward $4.12-3/4 to $4.15-1/2 range.
On the daily chart, a downtrend from $4.90 might be reversing. Its wave structure suggests a reversal. The bullish divergence on the daily RSI supports this view.
A break above $4.21-3/4 might be the first reliable sign of the trend reversal.
** 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.