SINGAPORE: The CBOT soybean January contract may retest a support at $8.99-3/4 per bushel, probably after a bounce to a resistance at $9.13-1/4.
The support and the resistance are identified respectively as the 76.4 percent and the 100 percent projection levels of an upward wave C from $8.57.
The contract failed twice to break $8.99-3/4. It may at least hover above this level for one day or bounce to $9.13-1/4. A break below $8.99-3/4 could cause a loss to $8.91-3/4.
The drop from the Dec. 12 high of $9.28 is deep enough to suggest a reversal of the uptrend from $8.57. On the daily chart, the contract failed to break a resistance at $9.16-3/4. It is biased to fall to $8.82.
A break above $9.13-1/4 (first chart) may lead to a gain to $9.26-1/2.