SINGAPORE: The CBOT soybeans March contract is expected to drop to $9.71 per bushel, as it has broken a support at $9.86-1/4.
The support is identified as the 50 percent retracement on the uptrend from the June 23, 2017 low of $9.22-1/4 to the July 12, 2017 high of $10.50-1/2. The next support will be at $9.71.
It seems that the contract is developing within a wedge that started at the July 12, 2017 high of $10.50-1/2. This pattern suggests that a lower support at $9.52-1/2 could be approached in due course.
The target at $9.71 will be aborted should the contract break above $9.86-1/4, now a resistance.
Use EIKON news "Alerts" to get reports sent to your email box automatically. 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 as being business, financial or legal advice. Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.
Comments
Comments are closed for this article.