SINGAPORE: The CBOT soybean May contract may break a support at $8.97-1/2 per bushel, and fall to the next support at $8.92, as it failed to break a resistance at $9.06-1/2.
The resistance is identified as the 38.2 percent retracement of the downtrend from $9.45 to $8.83. The failure of the contract to break this resistance signals a completion of the first round of the gains from $8.83. The gains will be reversed further.
A rise above $9.03-1/2 may signal an extension of the uptrend from $8.83 towards $9.14. On the daily chart, the contract failed to break a resistance at $9.03. The failure could have triggered a correction towards $8.91.
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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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