SINGAPORE: The CBOT soybean May contract may revisit its April 11 high of $9.04 per bushel, as it has broken a resistance at $8.97-1/2.
The resistance is identified as the 23.6 percent retracement of the downtrend from $9.45 to $8.83. The next resistance will be at $9.04, a break above which could lead to a gain to $9.06-1/2.
The correction triggered by the resistance at $9.06-1/2 may have completed. It consists of three small waves, with the third wave labelled c being a bit shorter than the first wave labelled a.
Such a relation is acceptable, considering that the uptrend from $8.83 may extend. A break below $8.94, the 76.4 percent projection level of the wave c, could cause a limited loss to $8.91-1/2.
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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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