CBOT September corn (CU26) may retrace toward $4.18-1/4 per bushel, following its failure to break resistance at $4.24-3/4.
The resistance is jointly established by a falling trendline and the 76.4% retracement of the downtrend from $4.30-1/2 to $4.06-1/4.
The failure to break a trendline generally leads to two outcomes: a continuation of the preceding downtrend or a decent correction.
A break above $4.24-3/4 may trigger a gain into the $4.27-1/4 to $4.30-1/2 range. On the daily chart, the market climbed above a falling channel.
A duplicated channel indicates a target around $4.39. The correction on the hourly chart looks like a pullback toward $4.18-3/4.
** 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.