SINGAPORE: The CBOT soybean May contract is biased to retest a support at $8.91 per bushel, a break below which could cause a loss to $8.76-1/2.
The support is provided by the 61.8 percent retracement of the uptrend from $8.53 to $9.53. Generally, the 61.8 percent level works as a strong support. Strengthening this support is another one at $8.93-1/2, the Dec. 27, 2018 low.
However, the current downtrend is driven by a strong bearish momentum, which makes the support at $8.91 vulnerable. It is doubtful if the contract could stabilize around this level.
On the hourly chart, the contract is riding on a wave c from $9.24-3/4. This wave could travel into a range of $8.69-1/2 to $8.90-3/4, formed by its 161.8 percent and the 100 percent projection levels.
Only a break above $9.03-1/2 could signal a completion of the wave c.
* 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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