SINGAPORE: The CBOT soybean May contract may retest a support at $9.11 per bushel, a break below which could cause a loss to the next support at $9.05-1/4.
These supports are provided by the 61.8 percent and the 76.4 percent projection levels of a downward wave C from $9.34-1/2. This wave consists of three small waves.
So far only two waves have unfolded. The current wave c is traveling towards $8.96-1/2. The bounce triggered by the support at $9.11 could be short-lived, to end around $9.15-1/2.
On the daily chart, the contract broke a rising trendline and completed a pullback towards this line. It is poised to retest a support at $9.07-1/2, the 76.4 percent retracement of the uptrend from $8.93-1/2 to $9.53.
A break above $9.15-1/2 (first chart) could lead to a gain to $9.19-3/4.
* 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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