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

SINGAPORE, Feb 3 (Reuters) - CBOT March corn CH26 may retest support at $4.23-1/2 per bushel, a break below which could trigger a fall to $4.21.

A channel technique suggests a target around $4.21. A retracement analysis on the uptrend from $4.17 reveals a support at $4.25-1/2, the 61.8% level.

A bounce occurred around the support, which is classified as a pullback toward the upper channel. The pullback may end below $4.30.

A break below $4.25-1/2 would be the very early signal that the downtrend from $4.34 has resumed. On the daily chart, the pattern from $4.48-1/2 looks like a bearish flag, suggesting a target around $4.04.

The pattern will become invalid once the market breaks above$4.29.

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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