SINGAPORE: The CBOT soybean January contract may test a resistance at $12.80-3/4 per bushel, a break above which could open the way towards $13.05-1/2.
The contract is riding on a wave c, which started at $12.14-1/4.
It is capable of travelling into a range of $12.80-3/4 to $13.22-1/4.
After breaking above a falling trendline, the contract has a better chance of testing $12.80-3/4. Support is at $12.55-1/2, a break below which could signal the completion of the wave c.
A bearish target zone of $12.30 to $12.39-1/2 will be established accordingly.
On the daily chart, a retracement analysis on the fall from $14.79 reveals a target of $12.94-3/4, the 38.2% level, as the contract has climbed high above $12.51-1/2.
The drop from the Dec. 6 high of $12.74-1/2 could be regarded as the second pullback towards the falling trendline.
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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