Technicals-CBOT corn may retest resistance at $5.36-1/4

CBOT December corn CZ26 may retest a resistance at $5.36-1/4 per bushel, a break above which could lead to a gain into the $5.39-3/4 to $5.42-1/4 range.

A correction from $5.49-3/4 is assumed to have been driven by a wave (4), which seems to have ended around a support at $5.25. This is the fourth wave of a five-wave cycle from $4.57-1/2.

The upward wave (5) could have started, capable of travelling above $5.49-3/4. A break below $5.30-3/4 would trigger a fall into the $5.25 to $5.27-1/4 range.

Such a fall would complicate the picture and cast a doubt on the bullish wave count. On the daily chart, two spinning tops formed on September 11 and 14, suggesting a completion of the short downtrend from $5.49-3/4.

Only a break below $5.23-1/2 could signal an extension of the downtrend from $5.49-3/4.