TECHNICALS-CBOT corn may test support at $4.23-1/2

SINGAPORE, Feb 2 (Reuters) - CBOT March corn CH26 may test support at $4.23-1/2 per bushel, with a good chance of breaking below this level and falling to $4.21.

A retracement analysis on the uptrend from $4.17 reveals a break below one of the key supports of $4.25-1/2, the 50% level. The next support is at $4.23-1/2, which is unlikely to hold, as a channel technique suggests a further drop to $4.21.

Indeed, the current fall looks like a continuation of the preceding downtrend from $4.48. On the daily chart, the pattern from $4.48-1/2 looks like a bearish flag, which has been confirmed, suggesting a target around $4.04.

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.

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