CBOT corn may retest resistance at $4.50-1/4

CBOT September corn CU26 may retest a resistance at $4.50-1/4 per bushel, a break above which could lead to a gain to $4.55-3/4.

The contract is making its second attempt to break the resistance. Given its strong bullish momentum, it is likely to succeed.

Support is at $4.45-3/4, a break below which could trigger a fall to $4.41-1/4.

On the daily chart, the market has briefly pierced above resistance at $4.99, the 50% retracement of the decline from $4.91-3/4 to $4.00, after failing twice to overcome this barrier. Experience indicates that the market generally succeeds on its third attempt.

The break will confirm both a bullish wedge and powerful pennant, with a wide target zone of $4.59 to $4.71-1/2.