SINGAPORE: CBOT soybean May contract may test a resistance at $8.79 per bushel, or at least hover above a support at $8.76 for one more day.
The resistance and the support are identified as the 200 percent and the 223.6 percent projection levels of a downward wave C from $9.04. The contract failed to break the support twice. A temporary bottom could be forming.
A break below $8.76 could cause a loss into the range of $8.71-1/4 to $8.74, while a break above $8.79 could lead to a gain to $8.80-1/2.
On the daily chart, another projection analysis reveals a similar support at $8.76-3/4, the 114.6 percent level of a downward wave C from $9.45. A falling trendline suggests that the contract may remain above $8.76-3/4 for a while.
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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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