SINGAPORE: The CBOT soybean May contract may test a resistance at $8.93-1/2, as it has found a support at $8.85-1/2 per bushel.
The support and the resistance are identified as the 100 percent and the 86.4 percent projection levels of a downward wave C from $9.45.
This wave could be broken down into five smaller waves. This structure suggests the wave C could have completed. It is not very clear if the contract could break $8.93-1/2 in its first attempt. A break could lead to a gain to $8.99-1/2, while a failure could cause a loss to $8.85-1/2.
On the daily chart, the break below a support at $8.91 looks unsuccessful. The contract is trying to recover the loss it made on Wednesday.
* 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. **
Comments
Comments are closed for this article.