Technicals-CBOT corn may extend gains to $5.33-3/4
CORN•CBOT December corn may extend gains on wave 5
SINGAPORE, Aug 26 (Reuters) - CBOT December corn CZ26 may extend gains to $5.33-3/4 per bushel, driven by a wave 5.
Based on the size of the wave 4, the wave 5 may travel to $5.33-3/4, the 261.8% projection level of an uptrend from $4.70-1/2.
Strategically, this target will be confirmed when the market breaks $5.28. A break below $5.24-1/2 may cause a fall into the $5.18-3/4 to $5.22-1/4 range. Such a deep fall would be a very early sign of completion of the wave 5.
On the daily chart, the contract has broken a key resistance at $5.23-1/2, the 100% projection level of a wave C. The break increases the chance of this wave to extend to $5.48-3/4.
The rise from the August 19 low of $4.86-1/4 consists of only white candles, a sign of the strong bullish momentum. Perhaps, a correction would not occur until the contract climbs to $5.48-3/4.
