SINGAPORE: The CBOT soybean May contract may retest a support at $8.97-1/2 per bushel, with a good chance of breaking below this level and falling to the next support at $8.92.
These supports are identified as the 23.6 percent and the 14.6 percent retracements of the downtrend from $9.45 to $8.83. The retracement analysis also reveals a resistance at $9.06-1/2, the 38.2 percent level.
The first round of the uptrend from $8.83 could have completed around $9.06-1/2. It may be reversed further. The contract has a better chance of falling to $8.92, after it deeply pierced below this level.
A rise above $9.03-1/2 may signal an extension of the uptrend from $8.83 towards $9.14. On the daily chart, the correction triggered by the resistance at $9.03 looks too shallow to complete. It may extend to $8.91.
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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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