CBOT corn may test support at $5.33-3/4

SINGAPORE, Aug. 31 (Reuters) - CBOT December corn CZ26 may test a support at $5.33-3/4 per bushel, with a good chance of breaking below it and falling toward the $5.28 to $5.30-3/4 range.

A bearish divergence formed on the hourly RSI, symbolizing an exhaustion of the rally. A few times, the market failed to break a resistance at $5.39-1/2, although this is not generally regarded as a key barrier.

The downside may not be limited to $5.28, once the market breaks $5.33-3/4, as a channel technique suggests a much lower target of $5.15-1/2.

On the daily chart, a projection analysis on a wave C from $4.57-1/4 reveals resistance at $5.39-1/4, which is almost identical with the one at $5.39-1/2 on the hourly chart.

The synchronized resistance levels tend to cause a correction or at least to stop the rise for a longer time.