SINGAPORE: The CBOT soybean March contract may fall further into a range of $8.89 to $8.90-1/4 per bushel, as suggested by a Fibonacci ratio analysis and a rising trendline.
The contract is riding on a wave C from $9.26-1/2. This wave is expected to travel to $8.89, its 61.8 percent projection level. A retracement analysis on the uptrend from $8.39-3/4 to $9.41 indicates a close target at $8.90-1/4, the 50 percent level. These two targets are pointed by the rising trendline as well.
A further bounce may be limited to the resistance zone of $9.02-1/4 to $9.03-1/4. On the long-term daily chart, both a triangle and a Fibonacci ratio analysis present a bearish outlook in the first quarter. Most likely, the first month contract would fall into the range of $7.30-1/4 to $7.90-3/4.
* Charts are not available in reports received in email box through "Alert". To get charts, use the news code of TECH/C to retrieve the original reports.
** 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.
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