CBOT soybeans may bounce into $14.03-$14.19 range
- A fall below $13.23-1/2 may confirm a continuation of the downtrend towards $12.50-1/2.
SINGAPORE: The CBOT soybean July contract may bounce more into range of $14.03 to $14.19, as it may have completed a correction from $16.67-1/2.
The correction adopted a three-wave mode. The third wave labelled c is 1.618 times longer than the wave a.
Such a relation suggests a completion of the wave c and the whole correction.
The strong bounce from the Thursday low of $13.23-1/2 seems to have confirmed such a completion. A retracement analysis reveals a target zone of $14.04-1/2 to $14.54-3/4.
Support is at $13.56, a break below could cause a fall to $13.35. On the daily chart, a retracement marks a support at $13.48-3/4, which helped stop the fall and trigger the bounce.
The bounce is classified as a pullback towards a rising trendline. It may extend to about $14.70-1/2.
A fall below $13.23-1/2 may confirm a continuation of the downtrend towards $12.50-1/2.
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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