TECHNICALS-CBOT corn may retest support at $4.27-1/2

SINGAPORE, Jan 27 (Reuters) - CBOT March corn CH26 may retest support at $4.27-1/2 per bushel, a break below which could trigger a drop into the $4.25-3/4 to $4.26-1/2 range.

A three-wave cycle from $4.17 seems to have ended around resistance at $4.31-1/2. The market is expected to fall toward the bottom of the wave B around $4.21.

Immediate resistance is at $4.29-1/4, a break above which could lead to a gain into the $4.30-1/2 to $4.31-1/4 range. On the daily chart, the bounce from $4.17-1/4 might have been driven by a wave d, the fourth wave of a downtrend from $4.53.

This wave is expected to be reversed by the fifth wave, the wave e. A break above $4.30-3/4 will not only make this view invalid, but also open the way toward the $4.35 to $4.39-1/4 range.

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

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