SINGAPORE: The CBOT soybeans May contract may retest a support at $10.04 per bushel, as it seems to have completed a bounce from the April 4 low of $9.83-1/2.
The support is provided by the 61.8 percent retracement on the uptrend from $9.55-3/4 to $10.82-1/2. It caused another bounce to $10.19.
So long as the contact stays below $10.19, signals will remain bearish and the support at $10.04 may be approached again.
Another retracement analysis on the daily chart suggests that the contract may eventually drop to $9.65,the 76.4 percent level, as pointed by a rising trendline.
A break above $10.19 (first chart) could lead to a gain to $10.34.
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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