SINGAPORE: The CBOT soybeans May contract looks neutral in a range of $10.05-1/2 to $10.23-3/4 per bushel, and an escape could suggest a direction.
The range is formed by the 50 percent and the 38.2 percent retracements of the uptrend from $9.28-3/4 to $10.82-1/2. A break below $10.05-1/2 could cause a loss to $9.87-1/4.
However, the bias seems to be towards the upside, after the contract found a strong support at $9.87-1/4. The drop from $10.82-1/2 consists of three waves. A Fibonacci projection analysis reveals the third wave labelled c could have ended around $9.87-1/4, its 100 percent projection level.
A break above $10.23-3/4 could open the way towards $10.46.
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.
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