SINGAPORE: The CBOT soybean May contract may retest a resistance at $9.11 per bushel, a break above which could lead to a gain to $9.16-1/2.
The resistance is provided by the 50 percent retracement of the downtrend from $9.34-1/2 to $8.87-3/4. The correction caused by this resistance could have completed and the uptrend from $8.87-3/4 may have resumed.
An inverted head-and-shoulders remains valid. It suggests a target around $9.23-1/4. The correction over the past two days is regarded as a pullback towards the neckline of the pattern. This pullback was a bit overdone.
A drop below the March 18 low of $9.01-3/4 could be extended into the range of $8.94-1/2 to $8.98-3/4. On the daily chart, the contract may test $9.14-3/4, the 38.2 percent retracement of the uptrend from $8.53 to $9.53, as it has broken the resistance at $9.03 and completed a pullback towards this level.
* 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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