SINGAPORE: CBOT soybeans first month may overcome a strong barrier at $10.68-1/2 per bushel and rally towards $12.07-1/4, as suggested by its technical signals.
The general expectation on the soybean price was a deep drop after China carefully selected this product to counter-strike the United States in the trade war.
The price did drop sharply on April 4. However, this drop has been recovered completely and quickly. The market reaction on the news seems to be quite often against the common sense.
Technically, the sharp drop is a part of a correction triggered by the resistance at $10.68-1/2, the 23.6 percent Fibonacci retracement on the downtrend from September 4, 2012 high of $17.94-3/4 to the Nov. 23, 2015 low of $8.44-1/4.
The correction has undoubtedly completed around a support at $9.83 when the contract approached $10.68-1/2 again. The complicated wave analysis indicates a target zone of $11.25-1/4 to $12.64-1/2, as the contract is driven by a powerful wave c.
Simply trendline analysis also reveals the contract has broken a falling trendline from $17.94-3/4. The break suggests a reversal of the downtrend.
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.