SINGAPORE, Oct 11 (Reuters) - CBOT corn will rise to $6.74-½ per bushel over the next four weeks, as the bull run will speed up after the explosive rally sparked by Friday's USDA report.
A strong bull trend has been developing since the Sept. 8, 2009 low at $3.02, with the current wave (3) unfolding towards a bullish target at $6.74-1/2, the 261.8 percent Fibonacci projection level based on the length of wave (1).
The 161.8 percent projection level at $5.44 was just exceeded with a big gap, which characterizes a strong bullish momentum and an explosive wave (3) rally.
Above the current level, minor resistance is observed at $5.96-3/4, the 61.8 percent Fibonacci retracement on the fall from $7.79 to $3.02, and it may not trigger a deep retracement.
A target of $7.79 over the next four weeks could be too aggressive, but it may not be unrealistic to put this forecast slightly beyond one month, say into a two-month time frame.