TECHNICALS-CBOT corn may drop into $4.17-$4.19-3/4 range

SINGAPORE, Jan 22 (Reuters) - CBOT March corn CH26 may drop into a range of $4.17 to $4.19-3/4 per bushel as a bounce from $4.17 could have completed.

The completion was confirmed by a break below a rising trendline and the two failures of the market to break resistance at $4.27-1/2.

Under a scenario that only the first round of the bounce was over, the market is still likely to retrace to $4.19-3/4, the bottom of a wave b.

On the daily chart, the contract failed to bounce above a resistance at $4.28. The bounce might have been driven by a wave d, the fourth wave of a five-wave cycle from $4.53.

The fifth wave, the wave e, could have started, unfolding towards $4.10 to $4.16-1/2 range.

Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.

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.