SINGAPORE: CBOT soybean March contract remains neutral in a range of $9.14-3/4 to $9.27-1/4 per bushel, and an escape could point a direction.
The range is formed by the 50 percent and the 76.4 percent projection levels of an upward wave C from $8.91-1/4. A break above $9.27-1/4 could confirm the extension of the wave C towards $9.38-1/2, while a break below $9.14-3/4 could cause a loss into the zone of $9.02-1/4 to $9.09-1/4.
The current sideways move is being shaped into a small triangle, which may turn out to be a bullish continuation pattern, as it developed after an uptrend.
On the daily chart, the contract faces a resistance zone of $9.21-3/4 to $9.27-3/4, formed by the Jan. 7 high and the 38.2 percent retracement on the downtrend from $10.54-1/2 to $8.39-3/4. A break above $9.27-3/4 could open the way towards $9.47, while a failure could be followed by a deep drop to $8.90-1/4.
* Charts are not available in reports received in email box through "Alert". To get charts, use the news code of TECH/C to retrieve the original reports.
** 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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