SINGAPORE: The CBOT soybean March contract may retest a support at $9.09-1/4 per bushel, as its drop from the Feb. 1 high of $9.31-1/4 looks incomplete.
The drop followed the completion of a corrective cycle from $8.80-1/2. The second wave of cycle, the wave B, ended at $8.91-1/4, which may be approached, according to the wave theory.
The 38.2 percent projection level of the wave C at $9.09-1/4 temporarily holds the fall and caused a bounce. Most likely, this bounce will end around $9.20-1/4.
On the daily chart, the contract faces a strong resistance zone of $9.21-3/4 to $9.27-3/4, which is 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. It tends to fall towards $8.90-1/4.
A break above $9.20-1/4 (first chart) could lead to a gain to $9.27-1/4.
* 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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