SINGAPORE: The CBOT soybean May contract may test a support at $8.92 per bushel, a break below which could cause a loss to $8.87-1/4.
The support is identified as the 14.6 percent retracement of the downtrend from $9.45 to $8.83. A correction triggered by the resistance at $9.06-1/2 has extended. It consists of three waves. The third wave labelled c is unfolding towards its 100 percent projection level of $8.91-1/2.
A break above $8.97-1/2 could signal the completion of the wave c and a bullish target at $9.06-1/2 will be established accordingly.
On the daily chart, the contract may find a support around $8.91, the 61.8 percent retracement of the uptrend from $8.53 to $9.53. This support may work together with the support at $8.92 on the hourly chart to prevent a further fall. A break below $8.91 could open the way towards $8.85-1/2.
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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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