TECHNICALS-CBOT corn may retrace toward $4.28-1/2 to $4.30-1/2 range

SINGAPORE, Feb 6 (Reuters) - CBOT March corn CH26 may retrace toward a support zone of $4.28-1/2 to $4.30-1/2 per bushel, as it failed to break a resistance at $4.33-3/4.

The contract seems to have been riding on a wave c from $4.25-1/4. A projection analysis reveals the key resistance of $4.33-3/4, the 161.8% level of this wave.

Working together with the resistance is another similar one established by a rising channel. Chances are the market may retrace toward $4.30-1/2, which is pointed by the lower channel line.

A break above $4.33-3/4 could open the way toward $4.35-1/4 to $4.37-1/4 range.

On the daily chart, the bounce seems to have lost its momentum around a key resistance at $4.36-1/2, the 61.8% retracement on a downtrend from $4.48-1/2. A correction is likely to follow.

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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