SINGAPORE: The CBOT soybean March contract may test a resistance at $9.27-1/4 per bushel, with a good chance of breaking above this level and rising more towards the next resistance at $9.38-1/2.
These resistances are identified respectively as the 76.4 percent and the 100 percent projection levels of an upward wave C from $8.91-1/4.
After travelling above $9.20-1/4, this wave has a better chance of extending to $9.38-1/2. Support is at $9.20-1/4, a break below which could cause a loss limited to $9.15, a support provided by a falling trendline.
On the daily chart, the contract has broken $9.21-3/4, the 38.2 percent retracement of the downtrend from $10.54-1/2 to $8.39-3/4. The break opens the way towards $9.47.
Strategically, the target at $9.47 will become available when the contract breaks $9.27-3/4.
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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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