SINGAPORE: The CBOT soybean January contract may temporarily peak around a resistance zone of $14.65-1/4 to $14.69-3/4 per bushel, as suggested by a projection analysis.
The zone is formed by the 161.8% projection level of a wave c from $13.66-3/4 and the 50% level of a bigger wave C from $13.62-1/4.
The small wave c may end around $14.65-1/4, even though the bigger wave C could extend far above this level.
At least a decent correction is expected to occur around the zone.
The wave C could alternately be counted as a wave (b), the second wave of a correction from the Sept. 13 high of $15.12-1/4.
CBOT soybeans may test support at $14.01-1/4
Based on this wave count, the upside may be limited to $14.95-1/4.
On the daily chart, the contract is expected to gain more to $14.76-3/4, as pointed by a falling trendline.
Trending signals will be rather mixed until the contract climbs above $15.12-1/4.
The current readings still favour a bearish scenario, as compared to the wave A, the drop from $15.12-1/4 looks too brief to be a wave C.
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